An increase in input productivity will:
A. shift the aggregate supply curve leftward.
B. reduce the equilibrium price level, assuming downward flexible prices.
C. reduce the equilibrium real output.
D. reduce aggregate demand.
B. reduce the equilibrium price level, assuming downward flexible prices.
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Which of the following fiscal policy actions would definitely cause a reduction in the size of an inflationary gap?
A) cuts in taxes and increases in government spending B) increases in government spending C) increases in taxes D) cuts in taxes
Which of the following would not be included in the calculation of this year's GDP?
A) a headlight bulb purchased at Joe's Auto Supply by Olivia to replace a burnt out bulb in her car B) a headlight bulb purchased by Ford Motor Co. from a supplier C) a headlight bulb produced but not sold this year and thus ending up as inventory D) none of the above, i.e., all would be included