Which of the following statements regarding aggregate supply are CORRECT?
A) Moving along the long-run aggregate supply curve, both the price level and the money wage rate change by the same percentage.
B) Moving along the short-run aggregate supply curve, both the price level and the money wage rate change by the same percentage.
C) Moving along the long-run aggregate supply curve, the money wage rate changes but the price level is constant.
D) Moving along the short-run aggregate supply curve, the money wage rate changes but the price level is constant.
A
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A value of the absolute price elasticity of demand equal to 0.25 indicates that
A) a 5% decrease in price leads to a 2% increase in quantity demanded. B) a 2% decrease in price leads to a 25% increase in quantity demanded. C) a 1% decrease in price leads to a 2.5% increase in quantity demanded. D) a 0.25% decrease in price leads to a 1% increase in quantity.
A potential problem arises in principal-agent relationships
a. because the agents' actions are not completely observed by the principals b. because the principals' actions are not completely observed by the agents c. because the agent's and the principals' actions are completely observed by each other d. the observability of actions is irrelevant
In the long-run equilibrium of a competitive market, the number of firms in the market adjusts until the market demand is satisfied at a price equal to the minimum of
a. average fixed cost for the marginal firm. b. marginal cost of the marginal firm. c. average total cost of the marginal firm. d. average variable cost of the marginal firm.
Which one of the following is not a mixed economy?
A. United States B. China C. Japan D. All of the countries listed are mixed economies.