The long-run aggregate supply curve is:
A. a horizontal line.
B. an upward-sloping line.
C. a vertical line.
D. a downward-sloping line.
Ans: C. a vertical line.
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The price level rises in the short run if
A. aggregate demand or aggregate supply shifts right. B. aggregate demand shifts right or aggregate supply shifts left. C. aggregate demand shifts left or aggregate supply shifts right. D. aggregate demand or aggregate supply shifts right.
The "Superbowl Effect" mentioned in your textbook is considered a fallacy or a mistake in reasoning because it's wrong to believe
A) one event always causes another to happen if it comes before the other. B) if you gain, I must lose. C) the whole must always be equal to the sum of its parts. D) what is true in one society will always be true in all societies. E) whatever goes up must come down again.