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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Large current account deficits imply large financial account surpluses
Indicate whether the statement is true or false
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.
From 2001 to 2015, the U.S. economy experienced three recessions.
Answer the following statement true (T) or false (F)
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