Which circumstance would contribute to a relatively flat slope of the short-run aggregate supply curve? (a) An increase in investment spending on residential construction causes an increase in wages for skilled carpenters. (b) An increase in foreign tourists coming to the United States causes an increase in prices of lodging at resort destinations. (c) A high number of vacancies in a shopping mall allows retail tenants to take on larger spaces with no increase in rent. (d) An increase in consumption spending on home furnishings allows furniture stores to reduce the number of promotional discounts offered.
Which circumstance would contribute to a relatively flat slope of the short-run aggregate supply curve? (a) An increase in investment spending on residential construction causes an increase in wages for skilled carpenters. (b) An increase in foreign tourists coming to the United States causes an increase in prices of lodging at resort destinations. (c) A high number of vacancies in a shopping mall allows retail tenants to take on larger spaces with no increase in rent. (d) An increase in consumption spending on home furnishings allows furniture stores to reduce the number of promotional discounts offered.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Which circumstance would contribute to a relatively flat slope of the short-run
curve
(a) An increase in investment spending on residential construction causes an increase in wages
for skilled carpenters.
(b) An increase in foreign tourists coming to the United States causes an increase in
lodging at resort destinations.
(c) A high number of vacancies in a shopping mall allows retail tenants to take on larger spaces
with no increase in rent.
(d) An increase in consumption spending on home furnishings allows furniture stores to reduce
the number of promotional discounts offered.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education