The long-run aggregate supply curve intersects the horizontal axis at the:
A. actual rate of inflation.
B. potential level of output.
C. expected rate of inflation.
D. current level of output.
Answer: B
You might also like to view...
"Diseconomies of scale" occur in
A) the long run, but not the short run. B) the short run, but not the long run. C) both the short run and the long run. D) neither the short run nor the long run.
Refer to Figure 15-6. The monopolist earns a profit of
A) $0. B) $170. C) $248. D) $372.
Banks earn profits by selling ________ with attractive combinations of liquidity, risk, and return, and using the proceeds to buy ________ with a different set of characteristics
A) loans; deposits B) securities; deposits C) liabilities; assets D) assets; liabilities
In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market sale ________ the supply of reserves causing the federal funds rate to ________, everything else held constant
A) decreases; decrease B) increases; decrease C) increases; increase D) decreases; increase