The land of Mordor increases its capital stock. As a result, the long-run aggregate supply curve shifts ________ and so does the ________ curve
A) rightward; aggregate demand
B) leftward; aggregate demand
C) rightward; short-run aggregate supply
D) leftward; short-run aggregate supply
C
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Slower real wage growth in the U.S. since the 1970s accompanied by rapid job growth, can be explained by:
A. a productivity slowdown accompanied by a decrease in the labor supply. B. skill-biased technological change. C. globalization. D. a productivity slowdown accompanied by an increase in the labor supply.
Which of the following is the most likely response to an increase in the U.S. real interest rate?
a. a London bank purchases a U.S. bond instead of a Japanese bond it had considered purchasing b. U.S. firms decide to buy more capital goods c. a U.S. citizen decides to put less money in his savings account than he had planned. d. All of the above are consistent.
In the long run, the increase in money supply changes ______.
a. inflation b. the interest rate c. the price level d. RGDP
Which of the following variables is likely to serve as an intermediate target for monetary policy?
A. Inflation rate B. Unemployment rate C. Open-market operations D. Money supply