A change in tastes for U.S. produced goods will
A) shift both the aggregate demand curve and the long-run aggregate supply curve.
B) shift the aggregate demand curve.
C) shift the short-run aggregate supply curve.
D) shift the long-run aggregate supply curve.
B
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The supply curve for a perfectly competitive industry is obtained by
a. making an empirical study of historical data. b. vertically summing the supply curves of firms in the industry. c. horizontally summing the average cost curves of firms in the industry. d. horizontally summing the supply curves of firms in the industry.
The aggregate supply curve is positively sloped because as the price level increases:
A. Profit margins increase in the short run. B. Costs of production decline in the short run. C. The purchasing power of money increases. D. The cost of borrowing declines.