Why do we use two supply curves in the aggregate goods and services market? What is the difference between them, and why do they have different slopes?
Aggregate supply is divided into two supply curves because of the differing responses of domestic production to increase in the aggregate price level between the short and long run. The short-run aggregate supply's upward slope shows that firms can expand output in response to a rising price level only in the short run. The long-run aggregate supply's vertical shape shows that in the long run a country's production is limited by its resource base.
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Using the information in the table above, calculate the employment-to-population ratio
A) 75 percent B) 65 percent C) 50 percent D) 23.2 percent
Which of the following was the least prominent crop grown in the colonial U.S.?
a. Tobacco b. Sugar c. Wheat d. Rice
Income tax reductions can increase the profitability of human capital to households
a. True b. False
Unemployment caused by people voluntarily quitting work in order to seek more attractive employment is called
a. the natural rate of unemployment. b. full employment. c. cyclical unemployment. d. frictional unemployment. e. structural unemployment.