When production costs fall,
a) the aggregate-demand curve shifts to the right.
b) the short-run aggregate-supply curve shifts to the right.
c) the short-run aggregate-supply curve shifts to the left.
d) the aggregate-demand curve shifts to the left.
Ans: b) the short-run aggregate-supply curve shifts to the right.
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Compared to consumption spending, investment historically has tended to be
A) stagnant. B) more variable. C) more stable. D) greater.
In the figure above, when disposable income equals $20 trillion,
A) consumption expenditure is less than disposable income but it is not possible to determine if consumers are saving or dissaving. B) consumption expenditure is greater than disposable income, so consumers are saving. C) consumption expenditure is greater than disposable income, so consumers are dissaving. D) consumption expenditure is less than disposable income, so consumers are dissaving. E) consumption expenditure is less than disposable income, so consumers are saving.