At points on the short-run aggregate supply curve, but to the right of the long-run aggregate supply curve, resources are:
A. underutilized, making it more likely that the short-run aggregate supply curve will shift down (to the right).
B. overutilized, making it more likely that the short-run aggregate supply curve will shift down (to the right).
C. overutilized, making it more likely that the short-run aggregate supply curve will shift up (to the left).
D. underutilized, making it more likely that the short-run aggregate supply curve will shift up (to the left).
Answer: C
You might also like to view...
The figure above shows Ronald's budget line. He has a weekly income of $20 and he spends it on hot dogs and hamburgers. The relative price of a hamburger is ________
A) 1/2 hot dog B) 5 hot dogs C) $20 D) 2 hot dogs
In the above figure, if we begin at S2 and the Fed buys bonds
A) the price of bonds falls, and the interest rate rises. B) the price of bonds falls, and so does the interest rate. C) the price of bonds rises, and so does the interest rate. D) the price of bonds rises, and the interest rate falls.
The widespread fall in the prices of homes caused consumers to:
A. decrease their spending, as they struggled to pay back debt. B. increase their spending, as they devoted their money to things other than homes. C. decrease their spending, and increase their debts. D. increase their spending, as saving was viewed as a bad investment.
Some people argue that limiting a CEO's pay may be a way to create good incentives
Indicate whether the statement is true or false