A change in the expected price level is likely to cause which of the following?
a. a shift in the short-run aggregate supply curve and long-run aggregate supply curve
b. a shift in the short run aggregate supply curve
c. a shift in the aggregate demand curve
d. a shift in the long-run aggregate supply curve
b
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Persistent deficit after 1980 was almost entirely due to
A) higher share of expenditures in GDP. B) lower tax revenue. C) lower share of expenditures in GDP. D) Higher tax revenue.
When drawn against the real interest rate, output supply increases if
A) current government expenses increase. B) future government expenses increase. C) current total factor productivity increases. D) the money supply increases.
If Anh's elasticity of labor supply is 1.5 and she increases her supply of labor by 5 percent, then the wage rate must have
A. Increased by 3.3 percent. B. Increased by 3.0 percent. C. Decreased by 7.5 percent. D. Increased by 7.5 percent.
During a recession, the ideal stimulus is all of the following EXCEPT:
A. theoretical. B. targeted. C. temporary. D. timely.