Which of the following will NOT shift the short-run aggregate supply (SRAS) curve?
A. a change in the consumer spending
B. a change in the wage rate
C. technological progress
D. a reduction in energy prices
Answer: A
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A textile manufacturing unit faces low productivity due to shirking by workers. Which of the following is a possible solution to increase productivity and retain employees?
A) The provision of a lower real wage B) The provision of a lower nominal wage C) The provision of minimum wages D) The provision of efficiency wages
Which of the following is true of firms in both monopolistic competition and perfect competition?
a. Firms face a horizontal demand curve. b. Price exceeds marginal revenue. c. Firms can enter and leave the industry with relative ease. d. Price exceeds marginal cost. e. Products are differentiated.
A government reduces its budget deficit, but at the same time people become concerned that the outlook for future government expenditures and revenues increase the chance it will default. Which of the following is correct?
a. The reduced budget deficit will raise interest rates in general. The increased risk of default will raise interest rates on government bonds. b. The reduced budget deficit will raise interest rates in general. The increased risk of default will reduce interest rates on government bonds. c. The reduced budget deficit will reduce interest rates in general. The increased risk of default will raise interest rates on government bonds. d. The reduced budget deficit will reduce interest rates in general. The increased risk of default will reduce interest rates on government bonds.
Which of the following statements is correct about the demand curve of the perfectly competitive industry?
A) The demand curve of the perfectly competitive industry is horizontal as are the demand curves facing the individual firms. B) The market demand curve of perfect competition is vertical because the individual consumers are buying a homogeneous product. C) The market demand curve of the perfectly competitive industry is downward sloping while the demand curve facing an individual firm is horizontal. D) The market demand curve of the perfectly competitive industry is downward sloping, so the demand curves of the individual firms are also downward sloping.