One reason why the aggregate supply curve might shift to the left is that:
A. businesses have become more optimistic.
B. consumer incomes have increased.
C. per-unit production costs have increased.
D. government spending has increased.
Answer: C
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What is the difference between quantity supplied and supply?
What will be an ideal response?
In the non-market-clearing model, "involuntary" unemployment results because
A) real wages are too high. B) real wages rise when aggregate demand increases. C) real wages fall when aggregate demand increases. D) wages and prices are sticky.
Buying a cup of coffee with a dollar bill represents the use of money as a:
A. medium of exchange. B. unit of account. C. store of value. D. commodity.
One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money. B. by increasing government spending. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.