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.
A photograph of Commodore Matthew Perry in 1855 juxtaposed with a Japanese portrait of him. When Per
The features found in a long bone.
A port fuel-injected engine that is equipped with long, tuned intake-manifold runners.
These photos show a rat burying a test object from which it has just received a single mild shock.
Apply the substance to the arm with long, smooth strokes, then cover the arm and abdomen with the ...
Newborn Experiences Across Cultures