Which of the following would cause an increase in aggregate supply?
A) An increase in factors of production
B) An increase in foreign demand for goods
C) A decrease in productivity
D) An increase in government spending
A
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In the short run, an unanticipated shift to a more restrictive monetary policy is most likely to result in
a. a decrease in short-term interest rates. b. a reduction in the growth rate of real GDP. c. an increase in the rate of inflation. d. an increase in employment.
Figure 3-8
In , if the initial demand and supply for soybeans were D1 and S1, how would a decrease in the cost of producing soybeans affect the market for soybeans?
a.
Demand would increase to D2, price would increase to P2, and the quantity would increase to S.
b.
Supply would increase to S2, price would decrease to P0, and the quantity would increase to S.
c.
Both demand and supply would increase so the price would remain at P1, but the quantity would increase to T.
d.
None of the above would occur.
If the prices of the factors used to produce a good change, both the demand curve and the supply curve of the good will shift.
Answer the following statement true (T) or false (F)
If you take national income and add transfer payments, then subtract income earned but not received, the result will be
A. disposable personal income. B. wages. C. personal income. D. net national product.