The short-run aggregate supply curve:
a. is positively sloped
b. is negatively sloped.
c. is a vertical line parallel to the price level axis.
d. is a horizontal line parallel to the output axis.
e. is a ray from the origin with slope exactly equal to 1.
a
You might also like to view...
Under monetary stabilization policy in the New Keynesian model, following a drop in output, the central bank should
A) increase the price level. B) decrease the price level. C) increase the interest rate. D) decrease the interest rate.
William is a wheat farmer and wheat sells in a perfectly competitive market, with an equilibrium price of $5 per bushel. Its marginal revenue: a. is greater than $5
b. is $5. c. is less than $5. d. cannot be determined from the above information.
Anderson's Bakery sells apple pies in a perfectly competitive market. The market price is $12 per pie. The bakery produces 300 pies per month with a marginal cost of $7 per pie, an average variable cost of $5 per pie, and an average total cost of $7 per pie. In this scenario, Anderson is likely to: a. increase the production of apple pies to maximize profit
b. decrease the production of apple pies but stay open. c. continue to maintain current production levels to minimize losses. d. shut down immediately to minimize losses.
GDP is not a perfect measure of welfare because it
a. treats a dollar spent on candy bars the same as a dollar spent on education b. treats a dollar spent on exports the same as a dollar spent on imports c. double counts the value of leisure time d. double counts depreciation e. counts illegal activities in the underground economy