ECONOMICS
AGGREGATE SUPPLY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Yes, I understand this from the notes
|
|
|
No, I don’t understand this from the notes
|
|
|
No, I don’t understand this, as I have not read the notes
|
|
|
None of the above
|
Detailed explanation-1: -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.
Detailed explanation-2: -A change in the number of sellers in an industry changes the quantity available at each price and thus changes supply. An increase in the number of sellers supplying a good or service shifts the supply curve to the right; a reduction in the number of sellers shifts the supply curve to the left.
Detailed explanation-3: -If the government does nothing and wages are flexible, which of the following will most likely occur in the long run? Falling wages will shift the aggregate supply curve to the right, producing full employment.
Detailed explanation-4: -Changes in input prices. Innovations in technology. Changes in prices of related goods. Changes in the number of producers. Changes in producers’ expectations. Government regulations, taxes, and subsidies.