Tax incentives that encourage saving, investment, and work will shift the AS curve to the right.
Answer the following statement true (T) or false (F)
True
These supply-side policies result in a rightward shift of AS because they lower production costs.
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Which of the following statements would be true of an economy that can be characterized as being to the left of the IS curve?
A) There is an excess demand for commodities at the existing interest rate. B) There will be a tendency for the level of output to decrease. C) There is an excess supply of commodities at the existing interest rate. D) There will be a tendency for interest rates to fall.
If a shortage exists in a market then: a. the price is below equilibrium
b. the quantity demanded exceeds the quantity supplied. c. the price will rise in the near future. d. all of the above.
An increase in the price of the U.S. dollar in terms of euros will cause, ceteris paribus,
A. European goods to be cheaper to residents of the United States. B. Higher interest rates in the United States. C. European goods to be more expensive to residents of the United States. D. A lower European inflation rate.
What pattern would you observe in an economy in which aggregate demand is increasing but in which long-run aggregate supply remained the same?
A. secular deflation B. inflation accompanied by declines in real GDP C. inflation accompanied by no change in real GDP D. a decline in consumption spending