Which of the following will most likely increase long-run aggregate supply?
What will be an ideal response?
an increase in the rate of investment
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Real Gross Domestic Product is
A) the amount of people unemployed divided by the total labor force. B) the productivity of labor. C) the most that can be produced when the economy's resources are fully employed. D) the value of total production linked back to the prices of a single year.
Why are many economists skeptical of the Fed's ability to fine tune the economy?
A) Monetary policy only affects output in the long run. B) Lags in policy make it difficult to properly time policy. C) Fiscal policy can be implemented more quickly than monetary policy. D) Monetary policy does not have any effect on output.
A market transaction causes an externality if someone
A. directly involved in the transaction receives uncompensated benefits or costs from it. B. not directly involved in the transaction receives uncompensated benefits or costs from it. C. directly involved in the transaction seeks legal assistance to ensure that the transaction is carried out. D. not directly involved in the transaction interferes in it by imposing regulations or product standards.
When commercial banks extend loans, they are able to expand the supply of money in the United States because the U.S. has
What will be an ideal response?