During the past 50 years, the production possibilities of the United States have expanded, increasing both short-run and long-run aggregate supply. Other things constant, this would lead to
a. an expansion in output and an increase in prices.
b. an expansion in output and a decrease in prices.
c. no change in either output or prices.
d. no change in output and a decrease in prices.
B
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The incidence of a tax:
A. falls entirely on suppliers if supply is perfectly elastic. B. falls entirely on suppliers if demand is perfectly inelastic. C. falls entirely on consumers if supply is perfectly elastic. D. falls entirely on consumers if demand is perfectly elastic.
Actual GDP will be below potential GDP:
A. when the economy is at full employment. B. during an economic boom. C. when resources are fully utilized. D. during a recession.
The foreign entry methods of ________ and ________ tend to be associated with smaller financial commitments.
A) mergers; joint ventures B) partnerships; mergers C) partnerships; franchising D) mergers; franchising
Household production increases when there is a stronger desire to avoid taxation
a. True b. False