If the supply of loanable funds curve shifts right, then the equilibrium
a. interest rate and level of net capital outflows rise.
b. interest rate rises and the equilibrium level of net capital outflow falls.
c. interest rate falls and the equilibrium level of net capital outflow rises.
d. interest rate and level of net capital outflows fall.
c
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A permanent increase in demand ______ economic profit in the short run and some firms will ____ in the long run
A. does not change; exit the market B. increases; enter the market C. increases; raise their price D. does not change; advertise their good
Hurricane Katrina destroyed oil and natural gas refining capacity in the Gulf of Mexico. This subsequently drove up natural gas, gasoline, and heating oil prices. As a result, this should
A) shift the short-run aggregate supply curve to the right. B) shift the short-run aggregate supply curve to the left. C) move the economy down along a stationary short-run aggregate supply curve. D) move the economy up along a stationary short-run aggregate supply curve.