The slope of the short-run aggregate supply curve depends on how sharply:
a. the marginal cost of production rises as real GDP expands.
b. the average cost of production rises as real GDP expands.
c. real GDP increases as the price level rises
d. nominal GDP increases as the price level rises.
e. product prices change as the price level rises.
a
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Generating electricity creates air pollution. This industry, if left unregulated, will produce at an inefficient market equilibrium where
A) marginal private cost equals marginal social benefit. B) marginal social cost equals marginal social benefit. C) marginal social cost equals marginal private cost. D) marginal social benefit is greater than marginal social cost.
In the ISLM framework a contractionary fiscal policy causes aggregate output to ________ and the interest rate to ________, everything else held constant
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase
Scarcity is:
A. a fact of life because of limited resources. B. not a problem for Bill Gates because he is a billionaire. C. can be eliminated by rational decision making. D. is a problem studied in microeconomics but is not a macroeconomic concern.
Albert Fishlow argued that if the railroads were built ahead of demand we would observe initial profit rates that were ______ and initial population densities near railroads that were _______
a. low; high. b. high; low. c. low; low. d. high; high.