Which of the following would cause the long-run aggregate supply curve to shift?
A) an increase in the price level
B) a decrease in the expected price level
C) an increase in labor productivity
D) an autonomous increase in consumption spending
C
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In the above figure, the axis break in the x-axis
A) reflects the fact that for the years covered in the figure, the unemployment rate was never less than 3 percent. B) shows that there is no relationship between inflation and unemployment. C) misleadingly shows that inflation has changed very little even though the unemployment rate has increased a great deal. D) implies that for the years covered in the figure, the inflation rate was always greater than 1 percent.
In January, buyers of gold expect that the price of gold will rise in February. What happens in the gold market in January, holding all else constant?
A) The quantity demanded increases. B) The supply curve shifts to the right. C) The demand curve shifts to the left. D) The demand curve shifts to the right.
The statement "balancing the budget on the backs of the poor" refers to
A. Transfer payment cuts in order to reduce government expenditures. B. Government spending cuts on public parks in order to reduce government expenditures. C. Tax increases on the poor in order to increase government revenues. D. Government spending increases in order to increase aggregate expenditures.
Macroeconomics approaches the study of economics from the viewpoint of
A. the operation of specific product and resource markets. B. governmental units. C. the entire economy. D. individual firms.