The long-run aggregate supply curve occurs at the level of real GDP consistent with
A) no inflation. B) the natural rate of unemployment.
C) individuals' tastes and preferences. D) low levels of inflation.
B
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If workers leave a country to seek out better opportunities in another country, then this will
A) shift the short-run aggregate supply curve of the original country to the right. B) shift the short-run aggregate supply curve of the original country to the left. C) move the original economy up along a stationary short-run aggregate supply curve. D) move the original economy down along a stationary short-run aggregate supply curve.
From 2007 to 2008, the Federal Reserve System reduced interest rates, the price which borrowers pay. As a result, economists expected the quantity of money demanded to
a. increase. b. decrease. c. not change. d. not change, although the demand schedule itself will shift outward.