Stabilization policy refers to attempts to
A) shift the AD curve to smooth short-run fluctuations in output.
B) shift the SRAS curve to smooth short-run fluctuations in output.
C) shift the AD curve to keep the price level as low as possible.
D) shift the SRAS curve to keep the nominal interest rate as low as possible.
A
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If people have more time to adjust to a price change,
a. demand becomes more elastic, and supply becomes less elastic b. demand becomes less elastic, and supply becomes more elastic c. both supply and demand become less elastic d. both supply and demand become more elastic e. elasticity of both demand and supply tends toward unity
Evaluate the statement: “There is no difference between the labor supply curve for the single competitive firm and the supply curve in a competitive market for labor.”
What will be an ideal response?