Changes in expectations about future price levels:
A. affect both the long-run aggregate supply curve and the short-run aggregate supply curve.
B. do not affect either the long-run aggregate supply or the short-run aggregate supply curve.
C. affect only the long-run aggregate supply curve.
D. affect only the short-run aggregate supply curve.
Answer: D
You might also like to view...
Refer to Figure 3.1. If Homer confesses to the crime and Marge does not, what is Homer's payout?
A) 1 year B) 2 years C) 7 years D) 15 years
There are two divorce laws, A and B. Under A, it takes only one person to agree to a divorce and the divorce is granted. Under B, it takes two persons to agree to a divorce before it is granted. According to Coase,
A. there will be the same number of divorces under both laws if transaction costs are zero. B. there will be more divorces under law A. C. there will be more divorces under law B. D. taxes should be imposed on those parties who seek divorces. E. subsidies should be granted to those persons who unwillingly get divorces.