Which of the following will not increase equilibrium output in the short run?
A) increases in R&D
B) increases in consumer confidence
C) increases in investment demand
D) increases in government spending
E) decreases in taxes
A
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"Job rationing occurs when the quantity of labor demanded exceeds the quantity supplied." Is the previous statement true or false? Explain your answer
What will be an ideal response?
As unemployment rose during 1930 through 1932 and the economy plunged into the Great Depression, policy makers
a. reduced tax rates and increased the money supply. b. increased tax rates and reduced the money supply. c. increased both tax rates and the money supply. d. reduced both the tax rates and the money supply.
Oil is a key input to the U.S. economy. Describe scenarios in which oil could be involved in each of the following types of shifts: a rightward shift in the short-run aggregate supply (SRAS) curve, a leftward shift in the SRAS curve, a rightward shift in the long-run aggregate supply (LRAS) curve, and a leftward shift in the LRAS.
What will be an ideal response?
Refer to Figure 23.6 for a perfectly competitive firm. If this firm produces the level of output corresponding to point B in the short run, it will earn
A. A loss greater than necessary. B. The minimum loss possible. C. The maximum profit possible. D. A profit, although not the maximum profit possible.