When money wages rise, the most significant effect on the aggregate supply curve is that it
A. shifts outward.
B. shifts inward.
C. becomes flatter.
D. becomes steeper.
Answer: B
You might also like to view...
Policymakers who believe that the costs of unemployment are very high will tend to favor which of the following during a recessionary gap?
A. Moderate fiscal stimulus, no monetary stimulus B. Fiscal and monetary tightness C. Moderate monetary stimulus, fiscal tightness D. Strong fiscal and monetary stimulus
In a society where government mandates that everyone shares the product of one's hard work with everyone else, people will tend to work harder than they would if they could keep the full product of their work
Indicate whether the statement is true or false
Which of the following is an effective counter argument to the claim that protectionism saves domestic jobs?
A) Protectionism eliminates domestic jobs in export industries. B) Imports create jobs in this country for people selling and servicing imported items. C) The cost of saving domestic jobs through protectionism may be high. D) all of the above
In order to determine a household's budget line, you must know the
A) prices of the goods bought and the household's income. B) prices of the goods bought, but not the household's income. C) household's income, but not the prices of goods bought. D) household's income, prices of the goods bought, and the household's preferences.