The table shows the initial aggregate supply and demand data for a country. If input prices rise and AS shifts to the left by 2,500 units at each price level, what output level will equal the new equilibrium price?
Answer: The new equilibrium price will be 500 and at that price the demand will be less i.e. 6000 and the supply will be 6000 which was previously 8500 at this price.
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The above figure shows the supply and demand curves for high-skilled and low-skilled labor. The figure shows that high-skilled workers earn a wage rate greater than low-skilled workers because
A) the supply of high-skilled labor is greater than the supply of low-skilled labor. B) high-skilled labor has a lower value of marginal product. C) of both the cost of acquiring skills and the differences in the value of marginal products. D) of discrimination.
Another term to describe the normal rate of return on capital is the
A) fixed cost of capital. B) depreciation cost of capital. C) opportunity cost of capital. D) monopoly rent.
The Federal Open Market Committee (FOMC) meets on the first Tuesday of each month
Indicate whether the statement is true or false
How can long run values in the real exchange rate change?
What will be an ideal response?