Which of these economic changes will shift the short-run aggregate supply curve to the left?
a. A hurricane destroying most of the agricultural land in a country
b. The discovery of new oil reserves in a country
c. A technological breakthrough increasing construction activities
d. An increase in the number of skilled workers
a
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In practice, the Federal Reserve keeps the discount rate close to the ________ rate in order to avoid large swings in borrowed reserves by banks
A) inflation B) prime C) six-month Treasury bill D) federal funds
If an external cost exists, then who bears the external cost in an unregulated competitive market transaction?
A) nobody B) the federal government C) someone other than the producers D) the buyers of the product
If a country's working-age population declines and its wealth increases, then the labor supply curve
A) shifts to the left if the effect of the change in wealth is bigger than the effect of the change in the working-age population. B) shifts to the right if the effect of the change in wealth is bigger than the effect of the change in the working-age population. C) shifts to the left. D) shifts to the right.
In the long run, a profit-maximizing firm in a monopolistically competitive market operates at
a. efficient scale. b. a level of output at which average total cost is rising. c. a level of output at which average total cost is falling. d. the level of output at which total revenue is maximized.