According to the model of the macro economy in Figure 18.3, a shift from LRAS1 to LRAS2 will cause, ceteris paribus,
A. A decrease in the level of output.
B. An increase in the unemployment level.
C. An increase in government spending.
D. A decrease in the price level.
Answer: D
You might also like to view...
What is fiat money?
What will be an ideal response?
In the United States, marketing cooperatives are most prevalent in
a. manufacturing. b. agriculture. c. the accounting profession. d. law firms.
When using the traditional command-and-control approach to environmental regulation, the government attempts to
a. set a minimum requirement and then allows the firm to determine the most efficient method for achieving this requirement b. determine the most efficient method for different industries c. make allowances for differences across industries and between firms d. set engineering standards that are applicable to all situations and does not recognize unique circumstances e. set a maximum requirement and they allows the individual firm the latitude of choosing the most efficient method
Economic theory suggests that the standard of living of American workers would rise if
a. the minimum wage were doubled. b. automation were outlawed. c. workers were forced to retire earlier. d. technological improvements increased output per worker-hour.