In the short-run an increase in the costs of production makes
A. output and prices rise. |
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B. output rise and prices fall. |
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C. output fall and prices rise. |
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D. output and prices fall. |
C. output fall and prices rise.
In the short-run an increase in the costs of production has adverse impact on output and price.
In the short-run an increase in the costs of production makes A. output and prices rise....
(22)
In the short run, contractionary monetary policy causes output
to _______________ and prices to _______________.
rise; rise
rise; fall
fall; rise
fall; fall
(23)
As the graph illustrates, consumers are worried about the
future and have begun saving more money. If the Fed does
not intervene in this situation, what will happen
to the price level in the long run?
Prices will increase.
Prices will stay the
same.
Prices will decrease.
There is insufficient
information to...
For each of the following events, what is its effect on prices and output in the short run? a. Prices of houses fall b. Businesses become more optimistic c. The government undertakes expansionary fiscal policy d. Energy prices rise e. The labour force increases f. Taxes are increased
Which of the following would increase output in the short run? A. An increase in stock prices makes people feel wealthier B. Government spending increases C. Firms chose to purchase more investment goods D. All of the above are correct
In the short run, if taxes rise, output will_and the exchange rate will increase; appreciate increase; depreciate decrease; appreciate decrease; depreciate
How does learning by doing affect average total costs? Short-run average total costs will rise because employees will continually fail, causing training costs (variable costs) to increase for the firm. Short-run average total costs will rise because firms will hire employees that have failed in previous jobs, causing decreased productivity Short-run average total costs will fall because employees learn which production processes work and become more productive given the available inputs. Short-run average total costs will remain unchanged because any...
19. What happens to prices and output when the long-run aggregate-supply curve shifts left? a. Prices and output both increase. b. Prices and output both decrease. c. Prices increase and output decreases. d. Prices decrease and output increases. 20. What would cause prices and real GDP to rise in the short run? a. an increase in the expected price level b. an increase in the money supply ...
Why does the short-run aggregate supply curve slope upward? O A. Profits rise when the prices of the goods and services firms sell rise more rapidly than the prices they pay for inputs. O B. An increase in market prices results in an increase in quantities supplied, as stated by the law of supply. O C. As the number of workers, machinery, and equipment increase, and technological changes occurs, quantity supplied increases. O D. All of the above cause the...
According to the classical model, an increase in the money supply causes a. output to increase in the long run. b. the unemployment rate to fall in the long run. c. prices to rise in the long run. d. interest rates to fall in the long run.
Related to Application: The Short-Run and Long-Run Elasticity of Supply of Coffee Short Run vs. Long Run in the Pear Market. Suppose in the production of pears, the short-run supply elasticity is 0.25, while the long-run supply elasticity is 3.60. In the short run, a 20.00% increase in the price of pears will cause the quantity supplied of pears to O A. fall by 3.50 percent. O B. fall by 5.00 percent. O C. rise by 3.50 percent. OD. rise...
An increase in the Canadian money supply would cause Canadian output to ________ and the Canadian net exports to ________ in the short run using a Keynesian model. A) rise; rise B) fall; rise C) rise; fall D) fall; fall