According to Figure 17.7, improved management would most likely result in
A. A shift in the long-run aggregate supply from LRAS2 to LRAS1
B. A shift in the AD curve from AD1 to AD2.
C. A shift in the AD curve from AD2 to AD1.
D. A shift in the long-run aggregate supply from LRAS1 to LRAS2
Answer: D
Economics
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The idea that nominal interest rates rise or fall one-for-one with expected inflation is known as
A) market risk. B) systematic risk. C) idiosyncratic risk. D) the Fisher effect.
Economics
Bob invests $50 in an investment that has a 50% chance of being worth $100 and a 50% chance of being worth $0. From this information we can conclude that Bob is NOT
A) risk loving. B) risk neutral. C) risk averse. D) rational.
Economics