A candidate for political office announces the following policies which, she says, economics clearly demonstrates will lead to higher output in the long run: 1 . increase immigration from abroad 2 . make trade more open between the US and other countries
a. 1 and 2 both shift long-run aggregate supply right.
b. 1 and 2 both shift long-run aggregate supply left.
c. 1 shifts long-run aggregate supply right, 2 shifts long-run aggregate supply left.
d. 1 shifts long-run aggregate supply left, 2 shifts long-run aggregate supply right.
a
You might also like to view...
In a bargaining game, players
A) are forced to negotiate, as in a mediation. B) voluntarily negotiate. C) are engaging in illegal activity. D) Both B and C
One unpleasant cure for the U.S. trade deficit of the 1990s would be for foreigners who hold U.S. financial assets to demand
A. lower interest rates to stimulate U.S. growth rates. B. higher interest rates and generate a recession in the United States. C. higher interest rates and generate an appreciation of the dollar. D. lower interest rates and generate a depreciation of the dollar.
A nuclear disaster in an economy would cause
(a) An economy's PPF to shift outwards away from the origin. (b) A move along the PPF from left to right. (c) The PPF to shift inwards towards the origin. (d) A move along the PPF from right to left.
Tax results in inefficient underproduction because it...
What will be an ideal response?