________ decreases aggregate supply
A) A rise in the money wage rate
B) An increase in potential GDP
C) A fall in the money wage rate
D) An increase the quantity of capital
E) A rise in the price level
A
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A short-lived increase in oil prices caused by destruction of oil-producing and oil-refining facilities by a large hurricane will
A) shift the SRAS curve to the right. B) shift the AD curve to the right. C) shift the SRAS curve to the left. D) shift the LRAS curve to the right.
If we import more than we export from the rest of the world we
A) must borrow an equal amount from the rest of the world. B) can lend an equal amount to the rest of the world. C) are running a trade surplus. D) are helping to finance investment in the rest of the world.
Provide a simple definition of the price elasticity of demand and explain why knowing the price elasticity for her product is useful to the firm's manager
What will be an ideal response?
Because of the kind of externalities that tend to be generated from general R&D resources bought by firms, the equilibrium price of R&D
A) is above the optimal level, and quantity is below the optimal level. B) is below the optimal level, and quantity is above the optimal level. C) and quantity of R&D are both above the optimal level. D) and quantity of R&D are both below the optimal level. E) must fall in order for the market to reach equilibrium.