An increase in the expected price level shifts the
a. short-run and long-run aggregate supply curves left.
b. the short-run but not the long-run aggregate supply curve left.
c. the long-run but not the short-run aggregate supply curve left.
d. neither the long-run nor the short-run aggregate supply curve left.
b
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If a country with a large government debt uses money creation to service and repay the debt, this will lead to
a. lower interest rates. b. an appreciation of the nation's currency in the foreign exchange market. c. inflation, higher interest rates, and a financial crisis. d. rapid economic growth, as the expansionary monetary policy stimulates the economy and generates the additional tax revenue to service the larger debt.
When P < ATC in the long run, a perfectly competitive firm experiences economic profit and new firms will enter the market.
Answer the following statement true (T) or false (F)