In the aggregate demand–aggregate supply model, which of these changes is most likely when the cost of production increases in the long run?
a. A leftward shift of the short-run aggregate supply curve
b. A leftward shift of the short-run aggregate demand curve
c. A rightward shift of the short-run aggregate supply curve
d. An increase in the potential output level increases

Some argue that U.S. workers cannot compete with cheap labor from many developing nations. This

A) is true and is a justification for tariffs to protect domestic jobs. B) is true and it is has been found that tariffs in these cases can save thousands of jobs and benefit the economy. C) is true but the benefits of free trade are still such that tariffs should not be placed on these industries. D) is not true, as evidenced by the fact that the United States carries on a lot of trade with countries that have lower wages.

When a demand schedule is drawn in a graph: a. price is measured on the vertical axis

b. quantity is measured on the horizontal axis. c. other variables are held constant. d. all of the above are correct.