question
All of the following would shift the LRAS curve to the right EXCEPT
A)a net inflow of human capital.
B)an increase in the size of the labor force.
C)an increase in the overall price level.
D)an improvement in technology.
A)a net inflow of human capital.
B)an increase in the size of the labor force.
C)an increase in the overall price level.
D)an improvement in technology.
answer
C)an increase in the overall price level.
question
Long-run aggregate supply reflects
answer
total production in the economy at full employment.
question
The long-run aggregate supply curve
A)is very sensitive to changes in the price level.
B)shows that at higher prices, potential real Gross Domestic Product (GDP) increases.
C)slopes up and to the right.
D)shows that long-run aggregate supply equals potential real Gross Domestic Product (GDP).
A)is very sensitive to changes in the price level.
B)shows that at higher prices, potential real Gross Domestic Product (GDP) increases.
C)slopes up and to the right.
D)shows that long-run aggregate supply equals potential real Gross Domestic Product (GDP).
answer
D)shows that long-run aggregate supply equals potential real Gross Domestic Product (GDP).
question
Economic growth is demonstrated by the LRAS as it
answer
shifts to the right.
question
Economic growth causes the
answer
production possibilities curve to shift rightward and the long-run aggregate supply curve to
shift rightward.
shift rightward.
question
Which of the following is NOT a reason for the slope of the aggregate demand curve?
answer
the substitution effect
question
When total planned real expenditures change due to changes in the cost of borrowing that result from variations in the price level, this is known as the
answer
Interest rate effect.
question
An increase in the amount of money in circulation would cause a
answer
shift of the aggregate demand curve to the right.
question
A weakening in consumer confidence causes a
answer
shift of the aggregate demand curve to the left.
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