When drawn against the real interest rate, the output supply curve unambiguously shifts to the right if
A) current capital decreases.
B) current total factor productivity decreases.
C) future total factor productivity decreases.
D) current or future taxes increase.
E) none of the above
When drawn against the real interest rate , the output supply curve unambiguously shifts to the right if current or future taxes increases . Hence,option(D) is correct.
When drawn against the real interest rate, the output supply curve unambiguously shifts to the right...
When drawn against the real interest rate, the output demand curve shifts to the right when Question 15 options: 1) current capital stock decreases. 2) current capital stock increases. 3) real wage rate decreases. 4) real wage rate increases. 5) current capital stock and real wage rate increases.
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 economy. B) a decrease in the total amount of labor supplied in the economy. C) a decrease in the available technology. D) a decline in the natural rate of unemployment. 2) The short-run aggregate supply curve shifts to the right when A) output gap is higher. B) output gap is lower. C) expected inflation is higher....
When the money demand curve shifts right and the money supply is unchanged, the equilibrium price level decreases and the equilibrium value of money increases. true false The money supply in Grayfield is $8 billion. Nominal GDP is $32 billion and real GDP is $24 billion. The central bank of Grayfield has instituted a policy of zero inflation. Assuming that velocity is stable, if real GDP grows by 2.5 percent this year then the central bank of Grayfield will increase...
19. What happens to prices and output when the long-run aggregate-supply curve shifts left? a. Prices and output both increase. b. Prices and output both decrease. c. Prices increase and output decreases. d. Prices decrease and output increases. 20. What would cause prices and real GDP to rise in the short run? a. an increase in the expected price level b. an increase in the money supply ...
10. The real interest rate is the (x) real rate of return to the lender. (y) real cost of borrowing to the borrower. (z) nominal interest rate plus the rate of inflation. A. (x), (y) and (z) B. (x) and (y) only C. (x) and (z) only D. (y) and (z) only E. (z) only 13. If there is a shortage of loanable funds, then A. neither curve shifts, but the quantity of loanable funds supplied decreases and the quantity...
21. If the supply curve shifts to the right and the demand curve shifts to the left which factor causes those shifts? A. Decrease in expected inflation B. Increase in expected inflation C. Business cycle boom D. Business cycle recession
When an increase in factor cost shifts the supply curve to the right, as a result the market clears at a lower price and a higher quantity. A.True B. False
2) A decrease in the real wage A) unambiguously increases consumption and increases labour supply. B) increases consumption and has an ambiguous effect on labour supply. C) has an ambiguous effect on consumption and increases labour supply. D) has an ambiguous effect on both consumption and labour supply. E) decreases consumption and has an ambiguous effect on labour supply. 3) If labour supply curve is downward sloping, then A) There is no substitution effect B) Substitution effect is exactly equal...
17. An explanation for the slope of the IS curve is that as the interest rate increases, the quantity of investment ______, and this shifts the expenditure function ______, thereby decreasing income. A) increases; downward B) increases; upward C) decreases; upward D) decreases; downward E) none of the above 18. According to the theory of liquidity preference, the supply of real money balances: A) decreases as the interest rate increases. B) increases as the interest rate increases. C) increases as...
. When the supply curve shifts out to the right) and the demand curve shifts out to the right), the equilibrium price will: increase. remain unchanged decrease. be indeterminate. Which enterprise is NOT an example of a market? a neighborhood lemonade stand the New York Stock Exchange painting one's house ticket scalping