An assumption on the LRAS curve is
A. an increase in the average price level occurs.
B. labor productivity is increasing.
C. technology remains unchanged.
D. the economy is operating to the right of the production possibilities curve.
Answer: C
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Usually an abundance of natural resources ________ labor productivity.
A. increases B. has no effect on C. decreases D. doubles
State how each of the following affect the aggregate demand curve
a. The price level increases. b. Consumers expect higher inflation in the future. c. The exchange rate rises. d. Foreign income decreases.
Relative to a simultaneous-move situation, the gain to firm R from being able to move first in the game in Scenario 13.14, would be
A) 40. B) 37. C) 32. D) 5. E) 3.
If there is an excess supply of money, there is an excess
a. demand for bonds and the price of bonds will decrease b. supply of bonds and the price of bonds will decrease c. supply of bonds but the price of bonds will not change d. supply of bonds and the price of bonds will increase e. demand for bonds and the price of bonds will increase