- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 10. Aggregate Output, Prices, and Economic Growth
- Subject 5. Shifts in Aggregate Demand and Supply
CFA Practice Question
Which of these changes will affect short-term supply but not long-term supply?
II. Changes in the expected rate of inflation
III. Supply shocks
IV. An increase in the resource base
I. Changes in resource prices
II. Changes in the expected rate of inflation
III. Supply shocks
IV. An increase in the resource base
A. I, II, III
B. I, III
C. All of these changes
Explanation: An increase in the resource base will affect long-term supply; the rest of the changes will affect short-term supply only.
User Contributed Comments 3
| User | Comment |
|---|---|
| rrichmondo | Hmm. If the price of oil fell from $150 to $ 50 and stayed at $ 50 would that not affect the long term supply - as well as affecting the short term supply |
| LloydBraun7 | That's what I hate about Economics - it's a whole bunch a 'theories' that rarely hold true in reality. |
| farhan92 | and that is the same reason everyone loves Lord of the rings... |