Essay
For the following changes in the economy, indicate whether short-run aggregate supply or long-run aggregate supply will be affected. Indicate the direction of the change.
a.an improvement in manufacturing technology
b.an increase in the world price of antimony (a chemical that the U.S. imports)
c.a bumper potato crop in the southern "potato belt"
Correct Answer:

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a.Both long-run and short-run ...View Answer
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