Why does the short-run aggregate supply curve shift to the left in the long run, following an increase in aggregate demand?
A) Workers and firms adjust their expectations of wages and prices upward and they push for higher wages and prices.
B) Workers and firms adjust their expectations of wages and prices upward and they accept lower wages and prices.
C) Workers and firms adjust their expectations of wages and prices downward and they push for higher wages and prices.
D) Workers and firms adjust their expectations of wages and prices downward and they accept lower wages and prices.
A
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A "company town" is one in which:
A. all employees of a company live within its confines. B. a single company employs the great majority of people in a town and owns most structures in the town. C. the company directs most town business by assisting local government. D. a single company directly regulates and monitors all town activity.
Which of the following groups of people would be included in the official unemployment rate?
a. part-time workers b. workers temporarily laid off from jobs to which they expect to return c. discouraged workers d. all of the above
In the product market
A. consumers trade monetary payments for goods and services. B. consumers trade resources for goods and services. C. businesses trade goods and services for resources. D. consumers trade goods and services for resources.
The GDP deflator in year 2 is 105, using year 1 as the base year. This means that, on average, the cost of goods and services is
A) 5% higher in year 2 than in year 1. B) 105% higher in year 2 than in year 1. C) 5% higher in year 1 than in year 2. D) 105% higher in year 1 than in year 2.