Why does the short-run aggregate supply curve shift to the left in the long run, following an increase in aggregate demand?
A) Workers and firms adjust their expectations of wages and prices downward and they accept lower wages and prices.
B) Workers and firms adjust their expectations of wages and prices downward and they push for higher wages and prices.
C) Workers and firms adjust their expectations of wages and prices upward and they push for higher wages and prices.
D) Workers and firms adjust their expectations of wages and prices upward and they accept lower wages and prices.
Answer: C
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A) wages. B) prices of goods and services. C) rents. D) profits.
Which of the following would NOT be a cause for an increased American demand for the Mexican peso?
A) The United States having lower interest rates than Mexico B) Increased American demand for Mexican goods C) The expectation by speculators that the value of the peso is edging up D) More economic expansion in the United States E) None of the above.
A market based firm
A) still needs structure. B) needs no structure. C) is really not a firm. D) none of these choices.
A public utility would be an example of
A. a natural monopoly. B. an unnatural monopoly. C. an unregulated private monopoly. D. a competitive monopoly.