Which of the following will increase macroeconomic equilibrium prices?
A. an increase in productivity
B. a decrease in input prices
C. a decrease in taxes
D. a decrease in government spending
Answer: C
You might also like to view...
Refer to Figure 24-2. Ceteris paribus, a decrease in the labor force would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
When economists address the concept of price and wage stickiness in relation to the business cycle, they are referring to
A) nominal prices and nominal wages. B) real prices and real wages. C) both nominal and real prices and wages. D) both nominal and real prices, but only real wages.
Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
Refer to the information provided in Figure 3.9 below to answer the following question(s).
Figure 3.9Refer to Figure 3.9. Assume there are only two people in the market for coconuts: Sasha and Kyle. Along the market demand curve for coconuts, at a price of ________, quantity demanded would be ________.
A. $10; 9 B. $14; 9 C. $10; 10 D. $14; 8