Expectation of lower future prices


Problem 1: If the workers at a firm successfully negotiate a wage increase,

a. The demand curve for the product the firm produces shifts rightward.

b. The demand curve for the product the firm produces shifts leftward.

c. The supply curve for the product the firm produces shifts rightward.

d. The supply curve for the product the firm produces shifts leftward.

Problem 2: On a supply-and-demand diagram, quantity demanded equals quantity supplied ______________.

a. only at the single equilibrium price

b. at every price at or above the equilibrium price

c. at every price at or below the equilibrium price

d. at every price

Problem 3: Expectation of lower future prices is a ___________.

a. rightward shifter of AD

b. eftward shifter of AD

c. reason for moving up along AD

d. reason for moving down along AD

Problem 4: A decrease in the price of electricity will cause _____________.

a. a movement down the AS curve

b. a movement up the AS curve

c. a leftward shift in the AS curve

d. a rightward shift in the AS curve

Solution Preview :

Prepared by a verified Expert
Macroeconomics: Expectation of lower future prices
Reference No:- TGS01746427

Now Priced at $20 (50% Discount)

Recommended (95%)

Rated (4.7/5)