Both the long-run and short-run aggregate supply curves will shift when
A) the endowments of the factors of production change.
B) the government increases defense spending.
C) an event occurs which is expected to last only a short period of time.
D) they are both upward sloping.
A
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Everything else remaining unchanged, a sudden increase in the price of oil is likely to cause a(n):
A) downward movement along the demand curve for labor. B) leftward shift in the demand curve for labor. C) upward movement along the demand curve for labor. D) rightward shift in the demand curve for labor
If the natural unemployment rate is 4 percent and potential GDP is $30 billion, then according to Okun's Law, when the unemployment rate falls to 3 percent, real GDP
A) decreases to $29.4 billion. B) first decreases by 4 percent and then increases by 4 percent. C) increases to $60 billion. D) increases to $30.6 billion. E) remains constant at $30 billion.