The long-run aggregate supply curve...
What will be an ideal response?
-is vertical at the level of potential GDP
-shows the relationship between the price level and real GDP when wages and other costs are at an equilibrium level
-does not shift in response to temporary changes in aggregate demand
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Philosopher John Rawls developed a thought experiment to help determine a standard by which we could say individuals are in agreement with the constitutional rules and, thus, actions of government. Behind his "veil of ignorance" _____
a. people know nothing about their friends and family b. people know nothing about themselves c. people know nothing about causal relationships d. people know nothing about politics
Total surplus with a tax is equal to
a. consumer surplus plus producer surplus. b. consumer surplus minus producer surplus. c. consumer surplus plus producer surplus minus tax revenue. d. consumer surplus plus producer surplus plus tax revenue.
Which of the following will be most likely to cause the production possibilities curve for a country to shift inward?
What will be an ideal response?
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point C to Point B, ________ additional LCD TVs could be produced when the production of OLED TVs is reduced by 20.
A. exactly 60 B. exactly 30 C. more than 30 D. fewer than 30