Under which of the following conditions will a change in government purchases have the greatest effect on the economy in the short run?
a. The aggregate demand curve is relatively flat.
b. The aggregate demand curve is relatively steep.
c. The short-run aggregate supply curve is relatively flat.
d. The aggregate demand curve is vertical.
e. The short-run aggregate supply curve is vertical.
C
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The above figure shows the apartment market in Big City. A rent ceiling of $1100 would
A) not create a black market. B) create a shortage of apartments. C) decrease search activity. D) shift the supply curve rightward.
Which of the following examples is experiencing diseconomies of scale?
a. As the Chewy sandwich chain expanded, it received volume discounts on meats, produce, paper products, and other items. b. As the Polaris marketing firm expanded overseas, the difficulty of managing the enterprise across several languages and time zones led to higher average costs. c. Costs at Patel Accounting LLC are steady regardless of how many clients the firm has. d. Northside Rehabilitation was able to cut costs while expanding by having its staff specialize in different treatment methods.
Comment on the problem with this statement: “Of course, there are diminishing marginal returns from adding more workers to a fixed quantity of plant and equipment because additional workers are not as good as initial workers.”
Please provide the best answer for the statement.
Why would a bumper crop be bad news for farmers?
A. Their crop has an inelastic demand and the resulting drop in price reduces their total revenue. B. Their crop has an elastic demand and the resulting drop in price reduces their total revenue. C. Their crop has an inelastic demand and the resulting drop in price raises their total revenue. D. Their crop has an elastic demand and the resulting drop in price raises their total revenue.