For each outcome below, tell what type of shift must have taken place in either the aggregate demand curve or the long-run aggregate supply curve
(a) In the short run, the price level is unchanged and output rises.
(b) In the long run, the price level declines and output is unchanged.
(c) In the long run, the price level rises and output declines.
(a) The aggregate demand curve shifts to the right.
(b) The aggregate demand curve shifts to the left.
(c) The long-run aggregate supply curve shifts to the left.
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A sudden expectation of future depreciation of the dollar causes funds to flow __________ the United States and the dollar to actually __________
A) out of; depreciate B) out of; appreciate C) into; depreciate D) into; appreciate
Suppose 10 citizens each derive marginal benefit from traffic lights according to the function MB = 10 - Q. If traffic lights cost $10 each to produce, what is the efficient quantity of traffic lights?
A) 9 traffic lights B) 12 traffic lights C) 8 traffic lights D) 1 traffic light