Which of the following can cause inflation?
A) increases in short-run aggregate supply
B) increases in long-run aggregate supply
C) decreases in short-run aggregate supply
D) decreases in aggregate demand
C
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Under oligopoly:
A. there are many sellers in the industry. B. the demand for each firm's output is perfectly elastic. C. there are only a few sellers in the industry. D. there are no barriers to entry.
Assume that in a purely competitive industry: (1) the entry and exodus of firms are the only long-run adjustments; (2) firms in the industry have identical cost curves; and (3) the industry is a constant-cost industry. Explain how long-run equilibrium
is eventually achieved in the industry when there are initially economic profits and losses. What will be an ideal response?
When goldsmiths issued receipts to gold owners, and those gold receipts circulated while gold stayed in the goldsmiths' safes,
A) the gold receipts were considered money because they were used as a means of payment. B) an infant banking system developed in sixteenth century Europe. C) fiat money was created. D) money was invented. E) Both A and B are correct.
If a firm shuts down in the short run it will
A) break even. B) suffer a loss equal to its fixed costs. C) declare bankruptcy. D) suffer a loss equal to its variable costs.