What is the main cause of shifting the aggregate supply curve?
a. Changes in productivity
b. Changes in amount sold
c. Changes in amount demanded
d. Changes in costs
a. Changes in productivity
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Hedge funds have been criticized for
A) their heavy use of short selling. B) their inability to mobilize a large amount of funds. C) forcing quick price changes that reduce market inefficiencies. D) excessive use of hedging strategies.
Suppose the market for oranges is perfectly competitive and unregulated. Suppose also that the chemicals used to keep the oranges insect-free damage the environment by an estimated $1 per bushel of oranges. Suppose QD = 1000 - 100P and QS = -100 + 100P. The market equilibrium quantity is
a. 400 b. 450 c. 500 d. 550
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
Patents encourage firms to engage in innovation.
Answer the following statement true (T) or false (F)