Graphically an increase in the short-run aggregate supply line represents a(n) ________, and a shift leftward of the long-run aggregate supply line represents a(n) ________.
A. adverse inflation shock; shock to potential output
B. favorable inflation shock; shock to potential output
C. shock to potential output; favorable inflation shock
D. shock to potential output; adverse inflation shock
Answer: A
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The two most important American business cycle events of the twentieth century were
A) the Great Depression and stagflation. B) World War II and the Great Depression. C) the productivity slowdown and the Great Depression. D) government budget deficits and World War II.
On December 17, 2010, President Obama extended income tax cuts initially enacted in 2001 and 2003 for two additional years
According to the permanent-income hypothesis, these tax cuts would represent ________ income and would have ________ on consumption. A) permanent; a significant impact B) permanent; very little impact C) transitory; a significant impact D) transitory; very little impact
_____ occurs when unobservable qualities are valued incorrectly because of a lack of information
a. Moral hazard b. Adverse selection c. Conspicuous consumption d. Marginal selection e. Statistical discrimination
When is an exclusive dealing agreement legal?
a. When its purpose is to require a certain minimum price b. When a customer can buy one product only if they also buy a different product c. When its purpose is to encourage competition d. When a dealer sells products from several companies