Which of the following events will lead to an inward shift of the aggregate supply curve?
a. an increase in the price level
b. an increase in consumer spending
c. an increase in labor productivity
d. an increase in wage rates
d
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Explicit costs are measured in dollars
Indicate whether the statement is true or false
Less of an economy's resources will be channeled into building new factories and equipment when: a. interest rates are high
b. households decide to save more of their income. c. firms are optimistic about their future profits. d. aggregate income increases. e. an economy has a trade deficit.
When Ukraine trades with Italy,
a. both countries are likely made better off. b. only Italy benefits since Ukraine can produce all goods at a higher level of quality than Italy. c. only Ukraine benefits since Italy's low wages guarantee that Italian firms will be profitable regardless of trade. d. neither country will benefit since Ukraine is more efficient than Italy in the production of all goods.
The short-run aggregate supply curve is:
A. an upward-sloping curve that intersects the aggregate demand curve and the long-run aggregate supply curve. B. a vertical line that intersects the aggregate demand curve but not the long-run aggregate supply curve. C. a horizontal line that intersects the aggregate demand curve and the long-run aggregate supply curve. D. an upward-sloping curve located to the left of the long-run aggregate supply curve