After a positive demand shock, what are the expected long-run adjustments?
a. Wages fall, price level falls, and output falls back to potential.
b. Wages rise, price level rises, and output falls back to potential.
c. Wages fall, price level rises, and output rises back to potential.
d. Wages rise, price level falls, and output falls back to potential.
e. Wages rise, price level rises, and output rises.
B
Economics
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A) share-the-gains, share-the-pains hypothesis. B) capture hypothesis. C) public interest theory. D) control-group hypothesis.
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An increase in taxes shifts the
A. aggregate supply curve outward. B. aggregate demand curve outward. C. consumption schedule upward. D. consumption schedule downward.
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