Refer to the information provided in Figure 26.8 below to answer the question(s) that follow.
Figure 26.8Refer to Figure 26.8. If the economy is currently at Point B producing output level Y1
A. input prices are likely to rise.
B. aggregate supply shifts to the left and the economy ends up at Point C.
C. the economy is operating above full employment.
D. all of the above.
Answer: D
You might also like to view...
In explaining economic growth, new growth theory stresses the role played by
A) women in the workforce. B) the government in directing the nation's investments. C) population moderation. D) the participation rate of elderly workers. E) human choices.
In the Solow growth model, if the level of investment is less than depreciation at the initial capital-labor ratio , then ?k is ________ and the capital-labor ratio ________ toward the steady-state capital-labor ratio
A) greater than zero; increases B) greater than zero; decreases C) less than zero; increases D) less than zero; decreases
Suppose the government were to replace the income tax with a consumption tax so that interest on savings was not taxed. The result would be that the interest rate
a. and investment both would increase. b. and investment both would decrease. c. would increase and investment would decrease. d. would decrease and investment would increase.
An increase in supply will occur when
A) the supply curve shifts downward to the right. B) the supply curve shifts upward to the left. C) the demand curve shifts downward to the left. D) the demand curve shifts upward to the right.