For each of the following scenarios, state the short-run effect on the AS curve
a. The price level decreases.
b. Lower inflation is expected in the future.
c. Worker productivity declines.
d. Oil prices increase.
e. The size of the labor force decreases.
a. A price level decrease will cause a movement down the AS curve.
b. Lower expected inflation will shift the AS curve to the right.
c. A decline in worker productivity will shift the AS curve to the left.
d. An increase in the price of oil will shift the AS curve to the left.
e. A decrease in the size of the labor force will shift the AS curve to the left.
You might also like to view...
Perfect price discrimination is
A) realistic. B) practiced by many firms. C) a purely theoretical possibility. D) very common.
From 1980 to 1987
a. foreigners were buying more assets from the United States than Americans were buying abroad. The United States was going into debt. b. Americans were buying more assets abroad than foreigners were buying from the United States. The United States was going into debt. c. foreigners were buying more assets from the United States than Americans were buying abroad. The United States was moving into surplus. d. Americans were buying more assets abroad than foreigners were buying from the United States. The United States was moving into surplus.