Which of the following causes a leftward shift in the short-run aggregate supply curve?
a. An increase of goods prices while nominal incomes are unchanged
b. An increase in nominal incomes.
c. An increase of full-employment real GDP.
d. An increase of personal consumption expenditures while the price level is unchanged.
e. An increase of personal consumption expenditures while full-employment real GDP is unchanged.
b
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A given industry, Z, is such that the 1-firm, 2-firm, 4-firm and 8-firm concentration ratios are the same. Based on this, we can conclude that Industry Z is
A) pure competition. B) monopolistic competition. C) oligopoly. D) pure monopoly.
An open-market purchase by the Federal Reserve withdraws excess reserves from the banking system and causes the money supply to contract
a. True b. False Indicate whether the statement is true or false
In an increasing cost industry, the long-run supply curve is
a. positively sloped. b. negatively sloped. c. horizontal. d. vertical.
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.