Assuming that a is positive, theories of short-run aggregate supply are expressed mathematically as
a. quantity of output supplied = natural rate of output + a(actual price level - expected price level).
b. quantity of output supplied = natural rate of output + a(expected price level - actual price level).
c. quantity of output supplied = a(actual price level -expected price level) - natural rate of output.
d. quantity of output supplied = a(expected price level - actual price level) - natural rate of output.
a
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Moving along the short-run Phillips curve, if ________ increases, then ________ decreases
A) unemployment; the price level B) inflation; real GDP C) inflation; unemployment D) unemployment; the expected inflation rate E) inflation; the price level
The average cost for a typical electric-power-production firm is AC = 100 - 10Q + Q2 where Q is measured in billion kilowatt hours per day. At the current regulated price, consumers demand 4 billion kilowatt hours per day. Is this market a natural monopoly? If demand increases to 10 billion kilowatt hours, is this market a natural monopoly? Explain
What will be an ideal response?