The short-run aggregate supply curve is upward sloping because
What will be an ideal response?
money wages do not immediately change when the price level changes.
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Two candidates are running for election as mayors of New York City that was recently impacted by Superstorm Sandy. In their election platforms, both candidates supported spending very similar amounts on hurricane protection
This similarity is most likely the result of A) both candidates necessarily having the same preferences towards risk and protection. B) the Principle of Minimum Differentiation. C) both the candidates realize that hurricane protection is a public good. D) politicians only take efficiency into account and hence all candidates will suggest the efficient outcome.
Which of the following is NOT a key financial service provided by the financial system?
A) risk sharing B) profitability C) liquidity D) information
What best describes changes in sectors in the US?
a. Agriculture was the chief generator of income in the United States until the decade of the 1880s. b. The number of people employed in manufacturing passed the number employed in agriculture shortly after the War of 1812. c. The percentage of the US labor force employed in agriculture increased slowly until the Civil War and declined from then to the present time. d. The current number of people employed in the government sector is about the same as the number of people employed in the service sector.
Suppose an economy produces two goods, food and machines. This economy always operates on its production possibilities frontier. Last year, it produced 1000 units of food and 47 machines. This year, it is producing 1050 units of food and 52 machines. Which of the following events could not explain the increase in output?
a. a reduction in unemployment b. an increase in available labor c. an improvement in technology d. Any of these events could explain the increase in output.