Suppose an economy is initially in long-run equilibrium and it then experiences a supply shock in the form of exceptionally high energy prices. Which of these will be true in this economy?
a. The short-run aggregate supply curve will shift leftward, and the long-run supply curve will shift rightward.
b. The short-run aggregate supply curve and the long-run supply curve will shift rightward.
c. The short-run aggregate supply curve will not shift, and the long-run aggregate supply curve will shift rightward.
d. The short-run aggregate supply curve will shift rightward, but the long-run aggregate supply curve will not shift.
e. The short-run aggregate supply curve and the long-run supply curve will shift leftward.
Question 2
In the long run, an expansionary monetary policy will lead to:
a. a decrease in aggregate expenditure.
b. an increase in unemployment.
c. an increase in the price level.
d. an increase in potential output.
e. a decrease in the price level.
Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four
Managing Supply Chain and Operations: An Integrative Approach, 2nd Edition
What is the value of the equilibrium constant, K, at 25°C for the reaction?
A pipe that is 0.46 m long and open at both ends vibrates in the second overtone with a ...
Suppose a country imports televisions. The country's supply and demand curves are shown in ...