Refer to the graph shown. If the price level is P1 the:
A. aggregate demand curve will shift to the left in the long run to restore equilibrium.
B. short-run aggregate supply curve will shift up (to the left) in the long run to restore equilibrium.
C. short-run aggregate supply curve will shift down (to the right) in the long run to restore equilibrium.
D. aggregate demand curve will shift to the right in the long run to restore equilibrium.
Answer: B
You might also like to view...
Stockholders share in the profits of a corporation
a. in proportion to their years of stock ownership b. in proportion to their ownership of stock c. equally regardless of number of shares owned d. only if they participate in firm management decisions e. only if they attend stockholders' meetings
A tariff differs from a quota in that a tariff is:
a. levied on imports, whereas a quota is imposed on exports. b. levied on exports, whereas a quota is imposed on imports. c. a tax levied on exports, whereas a quota is a limit on the number of units of a good that can be exported. d. a tax imposed on imports, whereas a quota is an absolute limit to the number of units of a good that can be imported.
De Beers accounts for approximately 80% of diamond sales worldwide. The source of its market power is:
A. its exclusive ownership of South African diamond mines. B. its patent on diamond production. C. the engagement customs of couples in Western cultures. D. the perfectly inelastic demand for diamonds.
In 2018, why did the United States impose temporary safeguard tariffs beginning at 30 percent on imports of solar panels and up to 50 percent on imports of washing machines?
A. The United States wanted to ensure that it remained a net exporter of washing machines and solar panels. B. The U.S. International Trade Commission found that rising imports had harmed U.S. firms in these industries. C. The United States government imposed tariffs on washing machines and solar panels in retaliation for other countries' tariffs on U.S. exports of durable goods. D. Because of growing U.S. demand for washing machines and solar panels, the United States government saw the opportunity to increase government revenue and imposed tariffs on these products.