According to the Monetarists, After an Initial Increase in Aggregate

question 8

Multiple Choice

According to the monetarists, after an initial increase in aggregate demand,

• A) short-run aggregate supply curve will tend to shift leftward, reflecting the effect of higher wages adjusting in the long run.
• B) short-run aggregate supply curve will tend to shift leftward, reflecting the effect of lower wages adjusting in the long run.
• C) aggregate demand curve will tend to shift rightward, reflecting the effect of income adjusting in the long run.
• D) aggregate demand curve will tend to shift lower, reflecting the effect of price level adjusting in the long run.

Calculate the tax burden on buyers and sellers in a market.

Determine the price paid by buyers and received by sellers after the imposition of a tax.

Describe the effects of a price floor and a price ceiling on market equilibrium.

Identify the conditions that lead to a surplus or shortage resulting from price controls.

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Definitions:

Bid-Rigging

An illegal agreement among competitors to raise, lower, or maintain prices at agreed-upon levels, often in auctions.

Larger Amounts

Quantities or volumes greater than usual or compared to a standard measure, indicating a significant scale.

Auctioneer

An individual or company that conducts auctions by accepting bids and declaring goods sold to the highest bidders.

First-Price Auctions

A type of auction in which the highest bid wins, and the winner pays the amount of their bid.