Which would increase aggregate supply?
a. A decline in productivity
b. An increase in business regulation
c. A decrease in the capital stock
d. Lower business taxes
d. Lower business taxes
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The Malthusian theory
A) shows that the production function will shift upward continuously. B) predicts that the real GDP per person will continue to increase as long as technology increases. C) is also called the classical growth theory and predicts that we will run out of resources. D) claims that the subsistence wage will increase over time. E) is also called the neoclassical growth theory.
Neoclassical growth theory assumes that technological progress
A) is determined by investment. B) is determined by saving. C) responds to economic incentives. D) is a purely chance event.
Suppose the price of a product increases from €50 to €70 and the quantity supplied rises from 40 a day to 80. What is the Price Elasticity of Supply?
a) 0.5. b) -0.5. c) 2.5. d) -2.5.
If federal financial aid were severely reduced, what would happen to the equilibrium quantity of education supplied by educational institutions?
A. The quantity supplied would remain unchanged. B. The quantity supplied would fall. C. The quantity supplied would increase. D. It depends on whether the demand effect or supply effect is larger.