Question: Answer the below question When production costs rise, in the short run: O a. the aggregate-supply curve shifts down to the right O b. the

Answer the below question

When production costs rise, in the short run: O a. the aggregate-supply curve shifts down to the right O b. the aggregate-demand curve shifts down to the left O c. the aggregate-demand curve shifts up to the right d. the aggregate-supply curve shifts up to the left Question 6 1 pts A fall in the inflation rate causes the aggregate supply of an economy to _in the short run

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Wangs Concrete Service notes that the number of jobs each month follows the following distribution: 10 with probability 0.15, 11 with probability 0. 20, 12 with probability 0.20, 13 with probability...

The economy is initially at long-run equilibrium.The import price of theraw materials it uses for production nowfalls due to a worldwide over-supply. Select the correct statement below: a) In the...

1. What is the effect of a contractionary fiscal policy on aggregate demand curve and short run aggregate supply curve? * a) AD shifts right, SRAS shifts right b) AD shifts right, SRAS stays...

1.According to Say's law, a given value of supply must create a. an abundance of wealth for the economy's agents b. further increases in the supply of the inputs to production c. a decrease in the...

A supply shock, such as the development of a new technology, production costs and shifts the short run aggregate supply curve Negative; lowers; rightward Negative, raises, leftward Positive; lowers;...

1.When opening a print shop you need to buy printers, computers, furniture, and similar items. Economists call these expenditures a. capital investment. b. investment in human capital. C. business...

Factors that cause a shift in the aggregate demand curve are the following although the list is not exhaustive. 1. Any change in the components of aggregate expenditure. When consumption expenditure,...

you will be given a scenario that would cause a shift in supply or demand. You will also be required to show how price/quantity changes as Supply and Demand shifts. You can use Microsoft Word or...

One. This question has several parts Discuss how we measure real GDP in the United States. Describe 3 issues with relying on GDP as a measure of the quality of life. This question has several parts...

Lesson 3 Assignment Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The main difference between the short run and the long run is that:...

After analysing the completed Fact Finder, in addition to your recollection of the meeting, you determine that Maeve and Margot are each aged 42, and have been married for 12 years. They have two...

The development of B2B ecommerce has been a major driver of economic growth and innovation over the past two decades. B2B ecommerce refers to the buying and selling of goods and services between...

A company has a terminal value of $15,877,955. Using the VC method, calculate its current value (assume a discount rate of 40% and a five year time frame). Group of answer choices $85,395,452...

24. There are only two assets in the world, one risky asset and one risk-free asset. The expected return of the risky asset is 800 per year and its volatility is 18%. The risk-free rate is 2%. If you...

LO8.1 Define behavioral economics and explain how it contrasts with neoclassical economics.

3. advanced analysis First, graphically illustrate a doubling of income without price changes in the indifference curve model. Next, on the same graph, show a situation in which the person whose...

1. What information is embodied in a budget line? What shifts occur in the budget line when money income (a) increases and (b) decreases? What shifts occur in the budget line when the price of the...