Which of the following would cause the short-run aggregate supply curve to shift to the right?
A) an increase in the price level B) a technological advance
C) a decrease in inflation expectations D) an increase in interest rates
B
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Economic growth is represented on the aggregate supply model by a
A) shift in the short-run aggregate supply curve to the left. B) shift in the long-run aggregate supply curve to the left. C) shift in the long-run aggregate supply curve to the right. D) shift in the short-run aggregate supply curve to the right.
Proprietorships, partnerships, and corporations are the primary forms of
A) industries. B) business organization. C) principal-agent relationships. D) command-incentive relationships.
How does an increase in government transfer payments affect aggregate demand?
a. It has the same effect as a tax increase, which lowers AD with a larger multiplier than a spending decrease. b. It has the same effect as a tax cut, which increases AD but with a smaller multiplier than a change in spending. c. It has the same effect as a spending increase, which increases AD with a larger multiplier than a tax cut. d. It has the same effect as a spending decrease, which increases AD with a larger multiplier than a spending decrease.
Suppose the government of a small island country does not currently have any automatic stabilizers in place but they decide to implement them with the expectation of an impending recession. Which of the following would be most effective?
A. Institute a 4-year term policy for the president. B. Begin collecting property taxes. C. Create an unemployment compensation program. D. Pass legislation for a one-time investment in infrastructure.