17-

Both the long run and short run aggregate supply curve will shift when

		an event occurs which is expected to last only a short period of time.
		they are both upward sloping.
		a war occurs in the Middle East.
		the endowments of the factors of production changes

19-

Cost-push inflation occurs

		when the aggregate supply curve shifts to the right, while aggregate demand remains stable.
		when the aggregate demand curve shifts to the left, while aggregate supply remains stable.
		when the aggregate supply curve shifts to the left, while aggregate demand remains stable.
		when the aggregate demand curve shifts to the right, while aggregate supply remains stable.

20-

One effect of a stronger dollar is

		an increase in net exports.
		the reduction of American exports and the increase of American imports.
		an increase in both imports and exports. The effect on net exports is uncertain.
		the reduction of American exports and the decrease of American imports.

21-

Inflation is not a problem in the Keynesian model because

		the price level is not a real variable.
		it assumes that the short-run aggregate supply curve is horizontal..
		it assumes the long-run aggregate supply curve is vertical.
		it is focused on aggregate demand.

25-

Technological progress should lead to

		a downward movement of the investment function.
		an outward (rightward) shift in the investment function.
		less saving.
		an unchanged investment function.

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The detailed answer for the above question is provided below 17 Both the long run and short run aggr... View the full answer