Multiple Choice
The economy enters the long run once:
A) nominal wages become real wages.
B) real wages become nominal wages.
C) input prices start to change from being inflexible to fully flexible.
D) sufficient time has elapsed for real GDP to increase and unemployment to decrease.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: The short-run aggregate supply curve shifts to
Q18: In the long-run firms respond to the
Q20: The short-run aggregate supply curve is upward-sloping
Q21: Aggregate supply shocks will:<br>A)move the economy along
Q22: In the long-run, the attempt to correct
Q24: Supply-side economists say that:<br>A)lower tax rates on
Q25: The long-run aggregate supply curve:<br>A)is downward sloping.<br>B)is
Q26: The long-run Phillips Curve is essentially a
Q27: Cost-push inflation results directly from a(n):<br>A)decrease in
Q28: In the long-run, any inflation that occurs