QUESTION 7Suppose a hurricane destroys 20% of the capital stock in a country. In the long run, output willO a. remain unchanged; remain unchangedO b. decrease; decreasec. decrease; increaseO d. remain unchanged; increaseO e. decrease; remain unchangedQUESTION 8Menu costs help to explain:O a. why the long-run aggregate supply curve is horizontal.b. the negative slope of the aggregate demand curve.O c. why the long-run aggregate supply curve is vertical.O d. the negative slope of the aggregate supply curve.O e. the positive slope of the short-run aggregate supply curve.QUESTION 9Suppose new drilling techniques increase the world oil supply. In the long run, output willO a. increase; remain unchangeda b. increase; increaseC c. remain unchanged; remain unchangedO d. remain unchanged; decreaseO e. increase; decreaseand the price level willand the price level will

QUESTION 7 Suppose a hurricane destroys 20% of the capital stock in a country. In the long run, output will O a. remain unchanged; remain unchanged O b. decrease; decrease c. decrease; increase O d. remain unchanged; increase O e. decrease; remain unchanged and the price level will

QUESTION 7 Suppose a hurricane destroys 20% of the capital stock in a country. In the long run, output will O a. remain unchanged; remain unchanged O b. decrease; decrease c. decrease; increase O d. remain unchanged; increase O e. decrease; remain unchanged and the price level will

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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