If the money wage rate rises and potential GDP remains the same, does the LAS curve or the SAS curve shift or is there a movement along the LAS curve or the SAS curve?
What will be an ideal response?
If the money wage rate rises and potential GDP remains the same there is a decrease in short-run aggregate supply and no change in long-run aggregate supply. The SAS curve shifts leftward and the LAS curve is unchanged.
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Which of the following formulas defines average cost?
A. AC = TC/Q B. AC = MRP = MFC C. AC = MPP/Q D. AC = TC?Q
According to your textbook authors, the belief that economizing implies greedy behavior is
A) common but mistaken. B) uncommon but true. C) both common and true. D) neither common nor true.
If nominal GDP increases by 4 percent, then
What will be an ideal response?
Which of the following statements is CORRECT?
A. Since the mid-1940s, expenditures on income security and health programs have increased considerably as a percentage of total federal government spending. B. Taken together, expenditures on national defense and on income security and health programs now account for less than half of all federal government spending. C. Since the mid-1940s, expenditures on national defense have increased considerably as a percentage of total federal government spending. D. Expenditures on national defense now account for more than twice as much federal government spending as expenditures on income security and health programs.