What variables cause the short-run aggregate supply curve to shift? For each variable, identify whether an increase in that variable will cause the short-run aggregate supply curve to shift to the right or to the left
What will be an ideal response?
The variables that will cause the short-run aggregate supply to shift are: the size of the labor force, the size of the capital stock, productivity, the expected future price level, workers and firms adjusting to having previously underestimated the price level, and the expected price of an important natural resource. Increases in the labor force, the capital stock, or productivity will cause the short-run aggregate supply curve to shift to the right. Increases in the expected future price level, increases in the price of an important natural resource, and workers and firms adjusting to having previously underestimated the price level will cause the short-run aggregate supply curve to shift to the left.
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A) inelastic. B) unit elastic. C) elastic. D) unit elastic.
Corporations produce most of the output in the United States.
Answer the following statement true (T) or false (F)
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a. satisfaction received for each dollar spent on the last unit consumed b. total satisfaction received from consuming a certain number of units of that good c. dollar value of average utility d. change in price due to a one-unit increase in total utility e. price paid for the last unit of utility
Real GDP is always measured in
A) cheaper dollars. B) quality of goods produced. C) base-year dollars. D) nominal dollars. E) current dollars.