If labor productivity rises at the same time that there is a beneficial supply shock, what is the effect on short-run aggregate supply (SRAS)?
A) SRAS rises.
B) SRAS falls.
C) SRAS remains constant.
D) SRAS may rise, fall, or remain constant.
A
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The relationship between the MPS and the MPC is such that
A. 1 ? MPC = MPS. B. MPC - MPS = 1. C. MPS/MPC = 1. D. MPC ? 1 = MPS.
Household consumption depends on both income and interest rates. In the above figure
A) household consumption is held constant. B) interest rates are held constant. C) household income is held constant. D) no variable is held constant.
Consider a linear, upward sloping supply curve. If the supply curve shifts upward, then:
A) the price elasticity of supply will increase. B) the price elasticity of supply will increase if the slope of the supply curve is greater than one. C) the price elasticity of supply will increase if the slope of the supply curve is greater than one and the lowest price needed to induce firms to supply anything is positive. D) the price elasticity of supply will be constant. E) none of the above
Briefly review the history of antitrust legislation in the United States