Economic growth due to labor force expansion or capital investments will result in
I. A leftward shift of short-run aggregate supply.
II. A rightward shift in long-run aggregate supply.
A) I only B) II only C) Both I and II D) Neither I nor II
B
You might also like to view...
A monopoly that can perfectly price discriminate creates no deadweight loss
Indicate whether the statement is true or false
Suppose an economy has output of 2100, government spending of 40, consumption of 1600, and absorption of 1940. Calculate the equilibrium values of investment and net exports
What will be an ideal response?
In many rural areas, electric generation and distribution utilities were initially set up as cooperatives in which the electricity customers were member-owners. Like most cooperatives, the objective of these firms was to:
A) maximize profits for the member-owners. B) maximize total revenue that could be redistributed to the member-owners. C) operate at zero profit in order to provide low electricity prices for the member-owners. D) minimize the costs of production.
Suppose that the supply curve remains unchanged. If the demand curve shifts to the right
A) the market clearing price definitely will decrease. B) the market clearing price definitely will increase. C) there will be no change in the market clearing price. D) the market will collapse.