Which of the following statements best describes the effect of an increase in structural unemployment on an AD/AS diagram?
a. In an AD/AS diagram, an increase in structural unemployment will shift AS to the right.
b. In an AD/AS diagram, an increase in structural unemployment will have no effect on AS or AD.
c. In an AD/AS diagram, an increase in structural unemployment will shift AS to the left.
d. In an AD/AS diagram, an increase in structural unemployment will shift AD to the left.
b. In an AD/AS diagram, an increase in structural unemployment will have no effect on AS or AD.
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Which of the following is not a limitation of the Pareto criteria?
a. Almost any policy change will make at least one person worse off. b. The status quo is lent legitimacy from being the starting point for evaluating social welfare. c. The criteria cannot tell us if a particular policy change will make all participants better off. d. The criteria do not allow for the ranking of all possible states of the world.
In 2015, Exxon Mobil, the world's largest oil company, spent $31 billion on
A. exploration and capital investment. B. defending itself against class-action lawsuits. C. executive compensation. D. payments to people affected by oil spills.
Refer to Table 9-12. If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded, how many swords will Estonia consume?
A) 75 B) 100 C) 125 D) 200
Suppose the real interest rate rises and the quantity of loanable funds increases. These changes could have been the result of
A) firms expecting higher future profits. B) firms expecting lower future profits. C) households expecting higher future income. D) in increase in the default risk.