Which of the following effects will not increase (i.e., shift to the right) the aggregate supply curve?
a. An increase in the average national price level.
b. A decrease in the price of fuel.
c. An appreciation of the domestic currency.
d. All of these answers are correct.
e. None of these answers is correct.
.A
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A rightward shift of the labor demand curve during a recession due to a government policy leads to ________ if wages are flexible
A) a fall in prices B) a decrease in real wages C) a fall in interest rates D) an increase in employment
Why is the H.O. model called the factor-proportions theory?
What will be an ideal response?
Under competitive conditions, the relative price of a finite resource would be expected to:
a. rise at an increasing rate. b. rise at a rate equal to the real interest rate. c. rise at a rate equal to the nominal interest rate. d. rise at a rate determined by demand conditions.
For a given aggregate supply curve, price level and output will both increase when aggregate demand decreases
a. True b. False Indicate whether the statement is true or false