By itself, an increase in the price of oil shifts the...
What will be an ideal response?
short-run aggregate supply curve leftward and does not shift the aggregate demand curve
You might also like to view...
Using the standard 45-degree line diagram, how does a decrease in investment spending effect the expenditure schedule?
a. It increases the slope of the expenditure schedule. b. It decreases the slope of the expenditure schedule. c. It shifts the expenditure schedule downward. d. It shifts the expenditure schedule upward.
A short-run marginal cost function is estimated as SMC = 96 - 4Q + 0.15Q2. Which of the following cost functions is associated with this estimated SMC equation?
A. a and d B. TVC = 96Q - 2Q2 + 0.05Q3 C. TVC = 96Q + 4Q2 + 0.15Q3 D. AVC = 96 - 2Q + 0.05Q2 E. SMC = 96 -- 4Q + 0.1Q2
Suppose individuals wish to obtain the most accurate comparison of living standards between the Canada and Saudi Arabia. To do so, one would convert Saudi Arabian output into dollars using
A) the current nominal exchange rate. B) the current real exchange rate. C) the prior year's real exchange rate. D) an average of the last five years' exchange rates. E) purchasing power parity methods.
A contraction of the money supply ________.
A. increases both the interest rate and aggregate demand B. increases the interest rate and decreases aggregate demand C. lowers the interest rate and increases aggregate demand D. lowers both the interest rate and aggregate demand