Changes in which set of factors can shift both the short-run aggregate supply curve and the long-run aggregate supply curve?
a. wages, non-labor inputs, expected price levels, and supply shocks
b. capital, land, labor, technology, and government regulations
c. sticky wages, other input prices, menu costs, and sticky prices
d. price levels, input prices, output prices, and sticky prices
b. capital, land, labor, technology, and government regulations
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By internal balance, most economists mean
A) full employment. B) price stability. C) full employment and price stability. D) full employment and moderate increase in prices. E) full employment and high disposable income.
If both supply and demand decrease and the shift in supply dominates, which of the following happens? a. The equilibrium quantity increases. b. The equilibrium price and the equilibrium quantity decrease. c. The equilibrium price decreases and equilibrium quantity increases. d. The equilibrium quantity increases and the equilibrium price change is indeterminate
e. The equilibrium price increases and the equilibrium quantity decreases.
A public good:
a. is rivalrous in consumption and excludable b. in nonrivalrous in consumption and nonexcludable c. must be produces by government d. both b. and c.
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y2. C. P3 and Y1. D. P2 and Y3.