Starting from long-run equilibrium, the long-run impact(s) of a sharp drop in oil prices, compared to the original equilibrium, is(are):
A. higher inflation and the same output.
B. the same inflation and the same output.
C. lower inflation and lower output.
D. higher inflation and lower output.
Answer: B
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Macroeconomic topics include
A) total, nationwide employment. B) studying what factors influence the price and quantity of automobiles. C) studying the determination of wages and production costs in the software industry. D) the impact of government regulation of markets.
If a cut in prices increases total revenue in the short run, what will it do to total revenue in the long run? a. It will decrease total revenue in the long run
b. It will increase total revenue in the long run. c. It will leave total revenue unchanged in the long run. d. Any of the above results are possible in the long run.
The long-run aggregate supply curve for an economy is always _____
a. vertical b. horizontal c. downward sloping d. upward sloping
Generally, as the size of a firm increases:
A. monitoring costs increase. B. economies of scope fall. C. team spirit increases. D. marginal productivity rises.