If households and firms expect higher rates of inflation, the ________ curve will shift ________.
A. SRAS; upward
B. AD; until it becomes vertical
C. SRAS; downward
D. AD; rightward
Answer: A
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The minimum point of the average total cost curve is called the efficient scale
a. True b. False Indicate whether the statement is true or false
The tools of demand-side macroeconomic policy are the money supply and prices.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.
Figure 6.6Refer to Figure 6.6. Bill's budget constraint was originally EF. If his new budget constraint is CD, then his income
A. did not change but the price of black beans increased. B. increased. C. decreased. D. did not change but the price of black beans decreased.
Governments may attempt to protect dairy farmers from low milk prices by:
A. banning the hoarding of milk by households. B. setting a minimum price on milk. C. increasing taxes on dairy farmers. D. reducing subsidies on the price of milk.