The change in potential real GDP and aggregate supply shown in the graph above can be a result of
A) a fall in the price level.
B) a decrease in the money wage rate.
C) an increase in the real wage rate.
D) an increase in the quantity of capital.
E) a decrease in the money price of oil.
D
You might also like to view...
Which of the following is likely to happen if the government of a country lowers import tariffs?
A) The domestic producers will be safe from foreign competition. B) The revenue earned by the government will fall. C) The price of imported goods will rise in the domestic market. D) The volume of the country's imports will fall.
Active fiscal policy is the main tool used by the Fed for economic stabilization
Indicate whether the statement is true or false
Interest rate increases lead to currency appreciation and increases in net exports
a. True b. False Indicate whether the statement is true or false
Which of the following is a normative economic statement?
A. The price of milk is too high. B. The current high price of milk is the result of reduced worldwide supply. C. When the price of milk rises, the quantity of milk purchased falls. D. When the price of milk rises, the cost of milk-based products rises.