The long-run aggregate supply curve will shift outward to the right when
A) the price level decreases. B) the real-balance effect increases.
C) there is economic growth. D) the amount of labor decreases.
C
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If households come to believe that permanent income has not changed ________
A) the impact of a change in taxes on spending will be limited B) they will consume on the basis of their current income C) their life-cycle will be affected D) the impact of a given change in taxes on spending will be enhanced
By focusing the customers on the price of a product, you make the demand for the product
a. More elastic b. Less elastic c. Perfectly inelastic d. None of the above
The theory of consumer choice
a. underlies the concept of the demand for a particular good. b. underlies the concept of the supply of a particular good. c. ignores, for the sake of simplicity, the trade-offs that consumers face. d. can be applied to many questions about household decisions, but it cannot be applied to questions concerning wages and labor supply.
According to the graph shown, if the government decides to increase taxes, it is most likely at equilibrium:
A. A
B. B
C. C
D. D