Which of the following causes a leftward shift in the short-run aggregate supply curve?
a. An increase of goods prices while nominal incomes are unchanged.
b. An increase of full-employment real GDP.
c. An increase of personal consumption expenditures while the price level is unchanged.
d. An increase in nominal incomes.
d
You might also like to view...
In the above figure, is the Fed likely to be afraid that inflation will occur or that a recession will occur? Discuss the appropriate monetary policy that should be made to restore the economy to potential GDP
What will be an ideal response?
In which of the following ways is the private market sector similar to the public sector in terms of decision making?
A) Prices determine the demand for goods and services in each sector. B) There is competition for scarce resource in both sectors. C) Both sectors may use a type of "force" if necessary. D) Votes by individual voters are basically equal in importance with dollars spent by individuals on goods.
Government farm subsidies in the U.S. reflect
a. the lack of urban population political clout b. the adverse market consequences that could undermine farm stability and the national economy c. the need for farmers to supply agricultural products in the world market d. the U.S. Constitution that mandates farm subsidies e. the concern that American food supply is unreliable
The level of the exports of U.S. goods and services amounted to ________ trillion, or 14% of GDP in 2011
a. 2.1 b. 3.1 c. 4.1 d. 5.1