A rightward shift of aggregate demand will raise output only if
A) wages remain unchanged.
B) wages rise by a lower percentage than prices.
C) wages rise by the same percentage as prices.
D) wages rise by a greater percentage than prices.
B
Economics
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If perfectly competitive firms exit a market, the
A) market supply curve shifts leftward. B) price of the good or service falls. C) profits of the remaining firms decrease. D) output of the industry increases.
Economics
An increase in subsidies and other government spending during a recession is likely to result in
a. an increase in rent-seeking activity. b. an increase in productive projects and a reduction in unproductive projects. c. a decrease in the level of future taxes. d. greater reliance on profits and losses in the allocation of resources.
Economics