Which of the following is a component of the classical model?
a. Changes in aggregate demand cause movements along the long-run aggregate supply curve.
b. An increase in aggregate demand shifts the short-run aggregate supply curve rightward.
c. Changes in aggregate demand shift the long-run aggregate supply curve rightward.
d. An increase in aggregate demand quickly lowers the price level.
a. Changes in aggregate demand cause movements along the long-run aggregate supply curve.
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Ceteris paribus, a rise in interest rates in the United States will cause the yen price of the dollar in international exchange markets to ________. I.e., the dollar ________ in value against the yen
A) increase; depreciates B) decrease; depreciates C) decrease; appreciates D) increase; appreciates
When a union successfully raises the wages of its members, it will also
a. increase total productivity, which will generally increase in proportion to the wage rate. b. encourage employers to purchase more of the union labor. c. increase the share of income allocated to labor as opposed to capital. d. increase the employer's incentive to find substitutes for union labor.