What would happen to the short-run and long-run aggregate supply curves if the capital stock grew and available supplies of natural resources expanded over the same period of time?
Both short-run and long-run aggregate supply would shift to the right causing a permanent increase in aggregate supply, since both of these changes act in that direction.
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Explain what occurs in the capital market
What will be an ideal response?
Suppose that nominal GDP in 2016 was less than real GDP in 2016. Given this information, we know for certain that
A) real GDP in 2016 was greater than real GDP in the base year. B) the price level in 2016 was less than the price level in the base year. C) real GDP in 2016 was less than real GDP in the base year. D) the price level in 2016 was greater than the price level in the base year.
The benefits to a program are more difficult to quantify in dollar terms that the costs to a program
a. True b. False
An optimum that occurs as a corner solution
A) includes only one good. B) cannot be an equilibrium. C) cannot exhaust the budget constraint. D) includes the exact same amounts of each good.