7. As shown in the diagram to the right, the short-run aggregate supply curve (AS) is upward-sloping. This positive slope is explained in part by the fact that A. input price increases cause firms to raise their prices. B. in the short-run, output prices are slower to adjust to increasing aggregate demand than are input prices. C. in the short-run, input prices particularly wage rates-are slower to adjust to increasing aggregate demand than are output prices. D. business owners are more intelligent than other resource owners. A. The AS curve shifts rightward. B. The AS curve remains unchanged. C. The AS curve becomes horizontal. D. The AS curve shifts leftward. Price level, P 8. How would the following event impact the economy's short-run aggregate supply (AS) curve? Event: High taxes and excessive regulation cause firms to reduce the quantity of their physical capital. Aggregate output (income), Y A. increase and therefore shift to the left B. increase and therefore shift to the right C. decrease and therefore shift to the right D. decrease and therefore shift to the left AS 9. A negative supply shock, such as an increase in oil prices, causes the short-run aggregate supply curve to

7. As shown in the diagram to the right, the short-run aggregate supply curve (AS) is upward-sloping. This positive slope is explained in part by the fact that A. input price increases cause firms to raise their prices. B. in the short-run, output prices are slower to adjust to increasing aggregate demand than are input prices. C. in the short-run, input prices particularly wage rates-are slower to adjust to increasing aggregate demand than are output prices. D. business owners are more intelligent than other resource owners. A. The AS curve shifts rightward. B. The AS curve remains unchanged. C. The AS curve becomes horizontal. D. The AS curve shifts leftward. Price level, P 8. How would the following event impact the economy's short-run aggregate supply (AS) curve? Event: High taxes and excessive regulation cause firms to reduce the quantity of their physical capital. Aggregate output (income), Y A. increase and therefore shift to the left B. increase and therefore shift to the right C. decrease and therefore shift to the right D. decrease and therefore shift to the left AS 9. A negative supply shock, such as an increase in oil prices, causes the short-run aggregate supply curve to

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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