The main process by which a recessionary gap is eliminated is a(n)
a. increase in wages that shifts the aggregate supply curve inward.
b. drop in wages that shifts the aggregate demand curve inward.
c. increase in wages that shifts the aggregate demand curve outward.
d. drop in wages that shifts the aggregate supply curve outward.
d
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Certain countries remain backward because they nurture superstition and are suspicious of new technology. This argument is based on the:
A) geography hypothesis. B) location hypothesis. C) culture hypothesis. D) capital hypothesis.
In the short-run macro model, an increase in government spending
a. may reduce real GDP b. partially crowds out private investment spending c. usually crowds out exports d. usually crowds out spending on services e. requires an increase in taxes
If Max's output per hour were 50 in 1994 and 60 in 1995, how much would his marginal productivity be in 1995?
A. 10 B. 50 C. 55 D. 60
An investor deposits $400 into a bank account that earns an annual interest rate of 8%. Based on this information, how much interest will he earn during the second year alone?
A. $25.60 B. $64 C. $34.56 D. $32