The upward-sloping short run aggregate supply curve shows the ___________ relationship between the price level and the level of real GDP in the short run.
a. positive
b. negative
c. neutral
d. bi-modal
a. positive
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However linked the war-induced cycle theory is to our economic reality, most economists suppose that
a. war conspiracies, seemingly far-fetched, have much validity b. these cycles were random shocks to an economy already in continuous cyclical motion c. most wars since 1815 (Napoleonic period) were initiated principally to jump-start a sagging economy d. wars are necessary to achieve sustained economic prosperity e. there is no link between war and the economy
If the production possibilities curve is a straight line, then:
A. The opportunity cost of producing one good is zero B. The law of increasing opportunity costs does not apply C. The society can produce more of both goods simultaneously D. The society is capable of producing only one of the goods and not the other
The short run is
A) a year or less. B) up to three years. C) the period of time in which the firm can vary its rate of output. D) the period of time in which the firm cannot change its use of at least one input.
Suppose that Toyota buys a factory previous owned by Chrysler Motors. Economists would:
A. consider this to be an economic investment. B. not consider this to be an economic investment because Toyota is less efficient than Chrysler. C. not consider this to be an economic investment because no new capital is created through the purchase. D. not consider this to be an economic investment because there is no way to know how it will affect stock holdings in the two companies.