Which of the following shifts aggregate supply to the right?
a. a decline in the price of imported natural resources
b. a technological advance
c. an older labor force that leaves jobs less frequently
d. All of the above are correct.
d
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Indicate whether the statement is true or false
During 2011, the price level in the U.S. rose at a faster rate than the price level in Japan. Other things the same, according to purchasing-power parity, this difference in inflation rates should have caused
a. the nominal exchange rate of the dollar to appreciate relative to the yen. b. the real exchange rate of the dollar to appreciate relative to the yen. c. the nominal exchange rate of the dollar to depreciate relative to the yen. d. the real exchange rate of the dollar to depreciate relative to the yen.
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.
Refer to the graph. Economic output in year 0 is $20 billion. What is potential output in year 1?
A. $20.4 billion B. $21.2 billion C. $20.8 billion D. $20 billion