If the adoption of a new technology led to gains in productivity ________
A) the ensuing positive supply shock would lead to an immediate increase in output
B) in the short-run, the ensuing increase in supply would lower inflation
C) and if this new technology permanently altered the productive capacity of the economy then the increase in output and decrease in inflation would be permanent as well
D) all of the above
E) none of the above
D
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Which of the following examples would most likely be considered a producer good?
a. an employee’s truck near an office building b. a sidewalk outside a factory building c. a coffee machine used in a break room d. a building housing an assembly line
Suppose the government of South Island fixes the exchange rate of its currency, the Islandia, in terms of the U.S. dollar. Initially the exchange rate is set at $1 per Islandia. In a crisis, the government changes the exchange rate to $0.50 per Islandia. This is an example of a(n):
A. revaluation. B. devaluation. C. appreciation. D. depreciation.
Assuming supply is a straight line and intersects the y axis, the equation of the inverse supply curve is represented as
A. P + Qs = c + d. B. P = c - dQs. C. P = c + dQs. D. Q = c - bPs.
Within perfect competition, an individual firm _______ affect price by changing output. A market as a whole _______ affect price by changing market output.
Fill in the blank(s) with the appropriate word.