Which of the following would not cause a shift in the long-run aggregate supply curve ?

Related Mcqs:

The natural rate of output is the amount of real GDP produced ?

A. When the economy is at the natural rate of unemployment B. When the economy is at the natural rate of investment C. When the economy is at the natural rate of aggregate demand D. When there is no no unemployment...

Suppose the economy is initially in long-run equilibrium Then suppose there is an increase in military spending due to rising international tensions According to the model of aggregate demand and aggregate supply what happens to prices and output in the long run ?

A. Output falls; prices are unchanged from the initial value B. Price fall; output is unchanged from its initial value C. Output and the price level are unchanged from their initial values D. Prices rise; output is unchanged from its initial value...

Suppose the economy is initially in long run equilibrium Then suppose there is a drought that destroys much of the wheat crop if policymakers allow the economy to adjust to long-run equilibrium on its own, according to the model to aggregate demand and aggregate supply what happens to prices and output in the long run ?

A. Output rises; prices are unchanged from the initial value B. Output and the price level are unchanged from their initial values C. Output falls; prices are unchanged from the initial value D. Prices fall; output is unchanged from its initial value...

Refers to Exhibit 4. Suppose the economy is operating in a recession such as point B in Exhibit 4. If policy makers allow the economy to adjust to the long run natural rate on its own, ?

A. People will reduce their price expectations and the short run aggregate supply will shift right B. People will raise their price expectations and aggregate demand will shift left C. People will raise their price expectations and the short run aggregate supply will shift left D. People will reduce their price expectations and aggregate demand … Refers to Exhibit 4. Suppose the economy is operating in a recession such as point B in Exhibit 4. If policy makers allow the...

According to the interest rate effect aggregate demand slopes downward (negatively) because ?

A. lower prices increase money holdings decrease lending interest rates rise, and investment spending falls B. lower prices increase the value of money holding and consumer spending increases C. lower prices decrease the value of money holdings and consumers spending decreases D. lower prices reduce money holdings increase lending interest rates fall, and investment spending … According to the interest rate effect aggregate demand slopes downward (negatively) because ?Read More...