Economic growth causes the
A) production possibilities curve to shift rightward and the long-run aggregate supply curve to shift rightward.
B) production possibilities curve to shift leftward and the long-run aggregate supply curve to shift rightward.
C) production possibilities curve to shift rightward and the long-run aggregate supply curve to shift leftward.
D) production possibilities curve to shift leftward and the long-run aggregate supply curve to shift leftward.
Answer: A) production possibilities curve to shift rightward and the long-run aggregate supply curve to shift rightward.
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Compared to prices charged by Uber, traditional taxi companies charge government-regulated prices. These government-regulated prices ________ in the market for shared rides
A) decrease producer surplus B) decrease consumer surplus C) increase consumer surplus D) decrease deadweight loss
Tax cuts on business income increase aggregate demand by increasing
A) business investment spending. B) consumption spending. C) government spending. D) wage rates.