Which of the following increases aggregate supply in the short-run, everything else held constant?
A) an increase in the price of crude oil
B) a successful wage push by workers
C) expectations of a higher inflation
D) a technological improvement that increases worker productivity
D
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Which of the following would be classified as fiscal policy?
A) The federal government cuts taxes to stimulate the economy. B) States increase taxes to fund education. C) A state government cuts taxes to help the economy of the state. D) The Federal Reserve cuts interest rates to stimulate the economy. E) The federal government passes tax cuts to encourage firms to reduce air pollution.
Assume that when the price of good X is $12, quantity demanded is 32. When price is decreased to $9, quantity demanded increases to 45. Over this range, the arc elasticity of demand is 1.182
Indicate whether the statement is true or false