If technological change occurs in the economy
A) we will move up along the long-run aggregate supply curve.
B) we will move down along the long-run aggregate supply curve.
C) the long-run aggregate supply curve will shift to the right.
D) the long-run aggregate supply curve will shift to the left.
C
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The production possibilities frontier can show a manufacturer’s possible combinations of output resulting from the combination of two goods.
Answer the following statement true (T) or false (F)
A bank has excess reserves of $1,000 and demand deposit liabilities of $80,000 when the reserve requirement is 25 percent. If the reserve requirement is lowered to 20 percent, the bank's excess reserves will be
A) $1,000. B) $5,000. C) $8,000. D) $9,000.
The cost of capital is a combination of a firm's payments to the different sources of capital funding is called
A) the weighted average cost of capital. B) the average cost of capital. C) the discount rate. D) the transfer price.
Lower real interest rates
a. tend to shift the consumption function upward. b. have no significant effect on consumption. c. tend to shift the consumption function downward. d. tend to move the consumer upward along the consumption function.