Which of the following is NOT an event that causes BOTH the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve to shift?
A. a change in an economy's labor supply
B. technological changes
C. a temporary change in the price of a key input
D. a change in an economy's endowments of the factors of production
Answer: C
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Which of the following statements is true?
A) Household production is counted in GDP as it amounts to real production. B) GDP growth distributes income equally to people in the economy. C) GDP accounting rules do not adjust for production that pollutes the economy. D) A decrease in the crime rate increases GDP as people will spend more on security.
Answer the following statements true (T) or false (F)
1. Under perfect competition, each firm can sell its entire supply at the market price. 2. The output level that yields maximum profit under perfect competition is where MR equals MC. 3. Under conditions of perfect competition, profits exist whenever AR is above AVC at equilibrium output. 4. On a graph of average cost curves, the space between ATC and AVC represents AFC. 5. Under conditions of perfect competition, if MR is below ATC at equilibrium output, the firm is suffering a loss.
If the demand for apples is highly elastic and the supply is highly inelastic, then if a tax is imposed on apples it will be paid: a. largely by the sellers of apples
b. largely by the buyers of apples. c. equally by the sellers and buyers of apples. d. by the government.
Suppose you deposit $1,000 cash in your checking account at a bank. If the bank is loaned up and if the required reserve ratio is 10%, the maximum amount that the bank can lend now, following your deposit is
A) $100. B) $900. C) $1,000. D) $10,000.