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1) The long-run aggregate supply curve shifts to the right when there is A) a decrease in the total amount of capital in the
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Answer #1

Question 1

Answer: The aggregate supply curve is a function of prices/inflation levels correspond to real GDP The long run aggregate supply curve shifts to the right as a result of decrease in labour supplied in the economy

Question 2

Answer: The aggregate supply curve is a function of prices/inflation levels correspond to real GDP The aggregate supply curve shifts to the right as productivity increases or the price of key inputs falls, making a combination of lower inflation, higher output, and lower unemployment possible. Therefore, to answer the question, the aggregate supply curve shifts to the right when output gap is lower

Question 3

Answer: Supply shocks

Question 4

Answer: A) an increase, an increase

Question 5

Answer:B) No change, a decrease

Question 6

Answer:B) Decrease, decrease

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