When talking about aggregate supply, it is necessary to
A. focus on the short run.
B. focus on the long run.
C. distinguish between the long-run aggregate supply curve and the long run aggregate demand curve when all adjustments to price level changes have been made.
D. distinguish between the long-run aggregate supply curve and the short-run aggregate supply curve.
Answer: D
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A) does not change; increases B) falls; decrease C) rises; increase D) rises; decrease E) falls; increase
If the United States decides to convert automobile factories to tank production, as it did during World War II, but finds that some auto manufacturing facilities are not well suited to tank production, then
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A. trade between California and the rest of the U.S. B. trade between the U.S., Canada, and Central America. C. agricultural trade only. D. health food products.
Which of the following would an economist classify as capital?
A. a corporate bond B. a $50 bill C. a guitar used by a musician D. a post office employee