Identify the three major factors that can cause a shift in aggregate supply.
What will be an ideal response?
The determinants of supply include: (a) changes in input prices; (b) changes in productivity; and, (c) changes in the legal-institutional environment.
Economics
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A perfectly competitive firm will operate and incur an economic loss in the short run if
A) the loss is smaller than its total fixed costs. B) it knows it can recoup the loss in the long run. C) shareholders do not know about the loss. D) the loss can offset future profits.
Economics
Refer to Scenario 15.1. If the interest rate is expected to fall to 5% in years 4 and 5, in terms of current dollars the value of the Muckrakers payments will
A) rise. B) stay the same. C) fall. D) change, but we cannot answer this question without further information.
Economics