Which of the following would cause an increase (rightward shift) in the short-run aggregate supply curve (SRAS)?
a. An increase in the long-run aggregate supply curve (LRAS).
b. A decrease in the CPI

The cross-trade of very similar products exported and imported by trading partners seems to contradict which of the following model(s)?

a. Ricardian b. Heckscher-Ohlin c. specific-factors d. It contradicts all of these models.

Refer to Figure 12-2. What happens if the firm produces more than Q4 units?

A) It could make a profit or a loss depending on what happens to demand. B) Its total revenue is increasing faster than its total cost. C) Its profit increases. D) It makes a loss.