Other things constant, an increase in resource prices will:
a. increase aggregate demand.
b. decrease aggregate demand.
c. decrease aggregate supply.
d. increase aggregate supply.
c
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In perfect competition, the buyers are usually looking for
a. easy entry b. familiar brands c. higher-quality goods d. volume discounts e. the lowest price
If Real GDP increases at an annual rate of 3 percent and velocity increases at a rate of 2 percent per year, then rules-based monetary policy advocates who wish to maintain a stable price level would set the annual money supply growth rate at
A) -2 percent. B) 0 percent. C) 1 percent. D) 6 percent. E) -1 percent.
Use the following graph to answer the next question.
What combination would most likely cause a shift from AD1 to AD3?
A. A decrease in taxes and a decrease in government purchases B. An increase in taxes and a decrease in government purchases C. A decrease in taxes and an increase in government purchases D. An increase in taxes and an increase in government purchases
Mondo's Microbrewery is growing rapidly. As a result of achieving larger size, the firm realizes it needs to hire quite a few additional employees and upgrade its brewing and bottling equipment, which increases its average costs. The best explanation for these events is that Mondo's Microbrewery is experiencing ________ returns to scale.
A. constant B. decreasing C. increasing D. first decreasing and then increasing