When a supply shock is permanent
A) both the long-run and short-run aggregate supply curves shift leftward.
B) there are no shifts in either the long-run or short-run aggregate supply curve.
C) only the long-run aggregate supply curve shifts leftward.
D) only the short-run aggregate supply curve shifts leftward.
A
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The equation for the spending multiplier is:
a. 1 / (1 ? MPC). b. 1 ? MPC. c. 1 ? (MPC ? MPS). d. MPC / MPS. e. none of these.
Insurance companies facilitate the transfer of risk from:
A. Those who have a low-risk tolerance to those with high risk-tolerance B. Those who have a high-risk tolerance to those with low risk-tolerance C. The insurance companies' owners to the insurance-policy holders D. Insurance policyholders to the bankers who lend money to the companies
From 2001 to 2015, the U.S. economy experienced three recessions.
Answer the following statement true (T) or false (F)
Large current account deficits imply large financial account surpluses
Indicate whether the statement is true or false