Higher resource costs shift the
A) long-run aggregate supply curve leftward, decreasing real GDP and increasing potential GDP.
B) short-run aggregate supply curve leftward, raising the price level and decreasing potential GDP.
C) short-run aggregate supply curve leftward, raising the price level and decreasing real GDP so it is less than potential GDP.
D) short-run aggregate supply curve rightward, raising the price level and decreasing real GDP so it is less than potential GDP.
C
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The above figure shows the reaction functions for two pizza shops in a small isolated town. Firm B producing 100 pizzas and firm A producing 50 pizzas is NOT a Cournot equilibrium because
A) Cournot duopolists agree to share the market equally. B) firm B is not on its best-response function. C) firm A is not on its best-response function. D) neither firm is on its best-response function.
Opportunity cost is the:
a. cost incurred when one fails to take advantage of an opportunity. b. price paid for goods and services. c. cost of the best option forgone as a result of choosing an alternative option. d. undesirable aspects of an option.
If real GDP is increasing more rapidly than population,
a. population must be declining. b. the country will have to export more than it imports. c. the general level of prices must be increasing. d. per capita real GDP will be increasing.
Which of the following is the main argument for why efficiency wages can help encourage workers to provide full effort on a job?
A. Workers do not understand that high-wage workers do not need to work hard to maintain their job. B. When the efficiency wage is less than the competitive wage, workers work harder in order to convince other firms to hire them away at the higher, competitive wage. C. Workers do not want to risk becoming unemployed when there is a reserve of involuntary unemployed workers willing to take their job that pays above the competitive wage. D. Management hires fewer workers at the higher efficiency wage, and therefore all workers must work harder. E. None of these provide an argument for why efficiency wages encourage workers to provide full effort on a job.