From a Keynesian perspective, a short-run decrease in investment spending will shift the aggregate
A) supply curve to the left.
B) supply curve to the right.
C) demand curve to the left.
D) demand curve to the right.
C
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If the cost of hiring workers increases but the marginal benefit remains unchanged, employers are likely to respond by hiring ________ at any given wage
A) more workers B) immigrant workers C) fewer workers D) teenaged workers
An increase in oil prices will
A) shift the short-run aggregate supply curve up and to the left. B) shift the short-run aggregate supply curve down and to the right. C) cause a movement along the short-run aggregate supply curve. D) not affect the short-run aggregate supply curve.
If Chris can produce a service using fewer resources than Pat would, then Chris
a. has an absolute advantage in producing that service b. has a comparative advantage in producing that service c. has both an absolute advantage and a comparative advantage in producing that service d. is productively efficient e. cannot have a comparative advantage in producing that service
If workers always see inflation coming, and if they demand wage increases in advance so that inflation does not erode real wages, then the economy's aggregate supply curve on the AD-AS diagram will
a. be a vertical line corresponding to potential GDP. b. be a horizontal line corresponding to potential GDP. c. slope downward. d. slope upward.