When output exceeds its full-employment level,
A) the short-run aggregate supply function shifts up.
B) wages fall.
C) the short-run aggregate supply function shifts down.
D) aggregate supply exceeds aggregate demand.
A
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With respect to Figure 3.1, the classicists argued that
a. the relevant aggregate supply curve is labeled B. b. the curves labeled B and G are both relevant during recessions. c. only the supply curve labeled M is important. d. None of the above
When you add state fixed effects to a simple regression model for U.S. states over a certain time period, and the regression R2 increases significantly, then it is safe to assume that
A) the included explanatory variables, other than the state fixed effects, are unimportant. B) state fixed effects account for a large amount of the variation in the data. C) the coefficients on the other included explanatory variables will not change. D) time fixed effects are unimportant.