Because the aggregate supply curve rises more steeply as the economy approaches full employment,
A. The recessionary GDP gap becomes larger.
B. Aggregate demand shifts to the left.
C. It becomes easier to reach full employment.
D. Inflation tends to accelerate.
Answer: D
You might also like to view...
Refer to Figure 4.8. How many different Nash equilibrium points are there in this game?
A) 0 B) 1 C) 2 D) 3
What is the difference between positive and normative statements?
What will be an ideal response?
The Federal Open Market Committee directive is a
A) general statement of Federal Reserve policy goals. B) detailed description of government security purchases to be carried out by the New York Federal Reserve bank. C) statement specifying the maximum level of inflation the Federal Reserve will accept. D) statement specifying the maximum level of unemployment the Federal Reserve will accept.
To derive the labor market demand curve, the labor demand curves for each firm in the output market of interest are summed
Indicate whether the statement is true or false