Which of the following would cause a rightward shift in the aggregate supply curve?
a. Larger-than-expected wage increases.
b. Lower oil prices.
c. Increased investment spending.
d. Greater government regulation.
b
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The table above shows the situation in the gasoline market in Tulsa, Oklahoma. If the price of a gallon of gasoline is $3.65, then
A) there is a surplus of gasoline in Tulsa. B) there is a shortage of gasoline in Tulsa. C) the gasoline market in Tulsa is in equilibrium. D) Without more information we cannot determine if there is a surplus, a shortage, or an equilibrium in the gasoline market in Tulsa. E) There is neither a surplus nor a shortage, but the market is NOT in equilibrium.
Refer to the above figures. Which panel(s) represent the effect of a decrease in labor productivity?
A) Panel A only B) Panels A and C only C) Panel D only D) Panels B and D only
Federal budget deficits generally grow during recessions because
a. both tax revenues and transfer payments decrease. b. both tax revenues and transfer payments increase. c. tax revenues decrease while transfer payments increase. d. tax revenues increase while transfer payments decrease. e. tax revenues decrease but transfer payments are unchanged.
According to classical economists, ________ unemployment does not persist in the economy because wages will always adjust to ensure equilibrium in the labor market.
A. the natural rate of B. excessive C. frictional D. structural