The short-run aggregate supply curve is most likely to shift down (to the right) if:
A. input prices fall.
B. productivity falls.
C. sales taxes increase.
D. wages rise.
Answer: A
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Suppose that a curve has a slope equal to zero at some point A. To the right of A, the curve may
A. have a positive slope. B. have a negative slope. C. be a straight line. D. All of these responses are correct.
Refer to the above table. Assuming constant opportunity costs, which of the of the following statements is correct if the rate of exchange is 1 movie for 1 cuckoo clock
A) U.S. residents would be willing to export cuckoo clocks, but Swiss residents would not gain from exporting movies at this rate of exchange. B) Swiss residents would be willing to export movies, but U.S. residents would not gain from exporting cuckoo clocks at this rate of exchange. C) U.S. residents will gain from exporting movies and Swiss residents will gain from exporting cuckoo clocks at a rate of exchange. D) U.S. residents will gain from exporting cuckoo clocks and Swiss residents will gain from exporting movies at a rate of exchange.
Suppose there are only two countries in the world, Mexico and the United States. In the foreign exchange market, it follows that the
A) demand for pesos is linked to the demand for dollars. B) demand for pesos is linked to the supply of pesos. C) supply of pesos is linked to the demand for dollars D) supply of pesos is linked to the supply of dollars. E) none of the above
Public policy responses to monopolies:
A. always have more benefits than costs to society. B. always have more costs than benefits to society. C. never benefit society in the end. D. could aim to break up existing monopolies.