In the extended analysis of aggregate supply, the short-run aggregate supply curve is:
A. vertical and the long-run aggregate supply curve is horizontal.
B. horizontal and the long-run aggregate supply curve is vertical.
C. upsloping and the long-run aggregate supply curve is vertical.
D. horizontal and the long-run aggregate supply curve is upsloping.
C. upsloping and the long-run aggregate supply curve is vertical.
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The graph shows the market for ski chalets in Aspen. The Aspen Tourist Board asks the local government to impose a rent ceiling on ski chalets. If the rent ceiling is set at $1,900 a week, then there is
A) a shortage of 3,000 chalets a week. B) a surplus of 3,000 chalets a week. C) neither a shortage nor surplus of chalets. D) a shortage of 6,000 chalets a week. E) a surplus of 6,000 chalets a week.
The vicious circle of poverty refers to a condition where:
a. c and d. b. c and e. c. people are poor because they cannot invest in capital goods and they cannot invest in capital goods because they are poor. d. people cannot invest in capital goods because they are poor and they are poor because they cannot invest in capital goods. e. poverty is relative and poor people remain poor because the wealthy grow wealthier.