A demand shock that increases real GDP above its full-employment level will, in the long run,
a. lead to a higher wage rate and an upward shift of the aggregate supply curve
b. lead to a lower wage rate and a downward shift of the aggregate supply curve
c. lead to a higher wage rate and a rightward shift of the aggregate demand curve
d. lead to a lower wage rate and a leftward shift of the aggregate demand curve
e. cause no further shifts in the aggregate supply or aggregate demand curve
A
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In April, market analysts predict that the price of titanium will fall in May. What happens in the titanium market in April, holding everything else constant?
A) The quantity demanded and the quantity supplied increase. B) The supply curve shifts to the right. C) The supply curve shifts to the left. D) The demand curve shifts to the right.
If the real rate of return is 0 percent, and the inflation rate is 3 percent, then the nominal interest rate must be:
A. 0 percent. B. 3 percent. C. ?3 percent. D. 6 percent.
One of the most important areas of disagreement among macroeconomists today is over
A) the slope of the IS curve. B) the slope of the LM curve. C) the definition of consumption spending. D) the definition of government spending. E) none of the above
Distinguish between a horizontal merger and a vertical merger
What will be an ideal response?