To the degree that the American Medical Association constraints the number of new spots that are available in the nation's medical schools, it is
A. shifting the demand for physicians to the right.
B. kinking the supply of physicians to make it vertical at the level of the constraint.
C. shifting the supply of physicians to the right.
D. shifting the demand for physicians to the left.
Answer: B
You might also like to view...
Because of diminishing marginal productivity
A) the labor supply curve is not vertical. B) nominal wages are sticky in a downward direction. C) the labor demand curve is negatively sloped. D) households save only a small share of their income.
The activists believe that
A) the time required for flexible prices to bring the economy back to the natural rate of unemployment is relatively short. B) the IS curve is relatively flat because of the broad range of assets whose demand is very sensitive to changes in the interest rate. C) the time required for flexible prices to return the economy to the natural level of real GDP is intolerably long. D) the severity of the Great Depression was primarily related to the large decline in the supply of money.