If efficiency wages became more common,
a. both the long-run Phillips curve and the long-run aggregate supply curve would shift right.
b. both the long-run Phillips curve and the long-run aggregate supply curve would shift left.
c. the long-run Phillips curve would shift right, and the long-run aggregate supply curve would shift left.
d. the long-run Phillips curve would shift left, and the long-run aggregate supply curve would shift right.
c
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The above figure shows the U.S. market for chocolate. With international trade, the gain in total surplus is equal to
A) area B. B) area A + area B + area C + area D. C) area B + area C + area D + area E. D) area C + area D. E) area B + area C + area D.
Based on the answer above, the price for Nike shoes_____________ and the quantity demanded for Nike shoes ____________
a. Uncertain; decreases b. Decreases; increases c. Decreases; uncertain d. Increases; uncertain
Which of the following is considered a major component of aggregate expenditure?
a. net exports b. net imports c. aggregate supply d. aggregate demand
Which of the following is NOT correct concerning perfectly competitive firms in the long run?
A) Long-run economic profits are zero. B) Price equals minimum long-run average cost. C) Entrepreneurs earn the opportunity cost of their investment. D) The opportunity cost of capital is zero.