One of the underlying assumptions made when drawing the short-run aggregate supply curve is that:
a. average wages and resource costs tend to be sticky in the short run
b. there are many buyers and sellers who are price takers.
c. sellers offer differentiated products in the short run.
d. capital is perfectly mobile between different industrial sectors in the short run.
a
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By itself, an increase in the price of oil shifts the
A) aggregate supply curve rightward and does not shift the aggregate demand curve. B) aggregate demand curve rightward and does not shift the aggregate supply curve. C) aggregate demand curve rightward and shifts the potential GDP line rightward. D) aggregate supply curve leftward and does not shift the aggregate demand curve. E) aggregate demand curve leftward and does not shift the aggregate supply curve.
At an equilibrium price, quantity demanded
a. exceeds quantity supplied. b. equals quantity supplied. c. is less than quantity supplied. d. Any of the above is possible.