If workers and firms expect increases in future prices, it can lead the short run aggregate supply curve to shift left
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
If we know the amount of total cost, average total cost, average variable cost, and marginal cost for each level of output, how can we find the level of output where the marginal product is the greatest?
A) It is the output for which the marginal cost equals average variable cost. B) It is the output for which the total cost is maximized. C) It is the output for which the marginal cost is minimized. D) It is the output for which the marginal cost equals average total cost. E) There is no way to find where marginal product is the greatest knowing only cost data.
Discretionary monetary policy was more frequently employed than discretionary fiscal policy in the two decades following World War II because
A) economic conditions did not seem to require any use of fiscal policy tools during this period. B) economists did not yet believe in the effectiveness of fiscal policy. C) inflation was not yet seen as a problem. D) monetary policy could be altered without Congressional action. E) monetary policy was thought to be capable of raising output while holding down prices.
An increase in workers' wealth causes
a. the supply curve of labor to shift to the right b. the supply curve of labor to shift to the left c. the supply curve of labor to stay the same d. an upward movement along the supply curve of labor e. a downward movement along the supply curve of labor
Explain the multiple expansion process and detail a multiple expansion scenario that features at least three deposits. Be sure to provide exact numbers for each step and note the total amount of new money created from the initial deposit.
What will be an ideal response?