If the short-run aggregate supply curve is shifting down repeatedly, it is rather likely that ________
A) output is declining repeatedly, relative to potential output
B) the long-run aggregate supply curve is shifting to the left
C) negative price shocks are recurring
D) all of the above
E) none of the above
E
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A large government debt increases the amount of capital in the economy and thereby increases future incomes and real wages
Indicate whether the statement is true or false
Which of the following is true of a firm that can successfully practice price discrimination?
a. Its total revenue is often reduced. b. It appropriates a part of the consumer surplus. c. It has no way of distinguishing between types of customers. d. It has no market power in the industry. e. It must be a perfectly competitive firm.
If the Fed wants to reverse the effects of an adverse supply shock on unemployment, it should
a. increase the money supply growth rate which raises the inflation rate. b. increase the money supply growth rate which reduces the inflation rate. c. decrease the money supply growth rate which raises the inflation rate. d. decrease the money supply growth rate which reduces the inflation rate.
The accompanying table below shows the relationship between the number of times you get your car washed each month and your total monthly benefit from car washes. Each car wash costs $15.Number of Car Washes Per MonthTotal Monthly Benefit from Car Washes0$01$202$363$484$565$60 What's the average benefit of 4 car washes per month?
A. $14 B. $12 C. $4 D. $8