Prepare a list of events that would shift the aggregate supply curve leftward.
What will be an ideal response?
Students should list examples that fit the determinants indicated in Figure 30.6. Some possibilities are a rise in the prices of domestic resources, an increase in wages beyond any rise in productivity, an increase in the prices of imported resources, declining rate of productivity without corresponding wage concessions, rising business taxes, reduction in research and development efforts, and more government regulation which adds to production costs.
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Refer to Scenario 5.9. Given that the probability of a positive faculty response is 75%, Torrid Texts' expected profit under complete information would be
A) $23.25 million. B) $45 million. C) $45.25 million. D) $45.75 million. E) $60 million.
If consumers elect to postpone consumption so they can have a more enjoyable future, the supply of loanable funds would increase and the market rate of interest would fall
a. True b. False
If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line. B. negatively sloped and "bowed inward" toward the origin. C. negatively sloped and "bowed outward" from the origin. D. a positively sloped straight line.
An increase in U.S. imports from Mexico ________ the supply of dollars and ________ the demand for pesos.
A. decreases; increases B. increases; decreases C. increases; increases D. decreases; decreases