In the long-run AS-AD model,
a. the position of the AD curve determines output
b. the self-correcting mechanism of the economy is irrelevant
c. the AS curve shifts leftward whenever the economy is growing
d. the position of the AD curve determines the price level
e. output fluctuates a great deal
D
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Which of the following examples best describes the concept of free entry?
A) Jack has an old cell phone that he wants to sell. He opens an account on eBay and auctions it off. B) Purecircuit Cor
In oligopolistic markets
A) there are many firms. B) there are no barriers to entry. C) there are only a few firms. D) all firms are price takers.
The fact that you may not know who your congressional representative is represents
A) rational ignorance on your part. B) the rival nature of information. C) inefficient oversupply of public servants. D) the use of the median voter theorem.
If there is a large increase in the price of oil and the Fed wishes to maintain stable output, which of the following should it do?
a. Do nothing, because the self-correcting mechanism will adjust the economy b. Sell bonds in the open market c. Wait, because output seldom changes when there is an increase in the price of oil d. Encourage firms to not adjust the wages they pay e. Buy bonds in the open market