List three changes that lead to a shift of the aggregate supply curve. Discuss why each change shifts the aggregate supply curve and in which direction the curve shifts
What will be an ideal response?
A change in potential GDP, a change in the money wage rate, and a change in the money prices of other resources shift the aggregate supply curve. If potential GDP increases (decreases) or the money wage rate decreases (increases) or the money prices of other resources decrease (increase), aggregate supply increases (decreases) and the AS curve shifts rightward (leftward).
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The market value of a bond is __________ related to the rate of interest
a. directly b. inversely c. exactly d. sometimes e. never
It has been recommended in Congress, on occasion, that the progressive income tax be converted into a proportional tax, with everyone paying the same tax rate. Is this a good proposal?
What will be an ideal response?
The emergence of English as the de facto world language ________ a comparative advantage in the production of books, movies and popular music.
A. has given non-English-speaking countries B. has no effect on which country has C. has given English-speaking countries D. has given all countries
In a fixed exchange rate regime, which of the following policies could be implemented to reduce a trade deficit and leave aggregate demand constant?
A) devalue the currency B) increase government spending C) decrease government spending D) decrease government spending and devalue the currency E) increase government spending and revalue the currency