Multiple Choice
Suppose that an economy produces 2400 units of output, employing the 60 units of input, and the price of the input is $30 per unit. Refer to the information above. If productivity increased such that 3000 units are now produced with the quantity of inputs still equal to 60, then per-unit production costs would:
A) Decrease and aggregate supply would decrease
B) Decrease and aggregate supply would increase
C) Increase and aggregate supply would decrease
D) Remain unchanged and aggregate supply would remain unchanged
Correct Answer:
Verified
Correct Answer:
Verified
Q2: Which would most likely increase aggregate supply?<br>A)
Q3: The short-run aggregate supply curve shows the:<br>A)
Q5: The long-run aggregate supply curve is:<br>A) Upward-sloping
Q6: An increase in personal income tax rates
Q8: The aggregate demand curve or schedule shows
Q9: An increase in expected future income will:<br>A)
Q10: Cost-push inflation is characterized by a(n):<br>A) Increase
Q11: If the dollar appreciates in value relative
Q12: The foreign purchases, interest rate, and real-balances
Q102: When the economy is experiencing demand-pull inflation,