Supply-side inflation could be caused by which of the following?
A) an increase in aggregate demand
B) a decrease in aggregate demand
C) an increase in long-run aggregate supply
D) a decrease in long-run aggregate supply
Answer: D) a decrease in long-run aggregate supply
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Other things constant, political instability in a poor nation tends to reduce
A) the money supply of the nation. B) the rate of return required to attract foreign investment. C) the level of foreign investment in the nation. D) interest rates in the nation.
An individual's value for a good or service is the
a. The amount of money he or she used to pay for a good b. The amount of money he or she is willing to pay for it c. The amount of money he or she has to spend on goods d. None of the above
There are many restaurants in a city, each one offering food and services that differ from those of its competitors. There is also free entry of sellers into the market, and each seller serves a very small fraction of the total number of meals served each day. The restaurant industry in Raleigh is best categorized as:
A. monopolistically competitive. B. perfectly competitive. C. an oligopoly. D. a pure monopoly.
The long run aggregate supply curve (LRAS) also represents
A. the full-employment level of output. B. the full-adjustment level of output. C. the full-information level of output. D. all of these.