Which of the following supply shocks would shift the aggregate supply curve inward?
a. A decrease in business taxes
b. A decrease in gasoline taxes
c. A decrease in the cost of raw materials
d. A decrease in agricultural output
e. A decrease in the amount and cost of government regulation
d
Economics
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Suppose there is a simultaneous central bank sale of bonds and tax increase. We know with certainty that this combination of policies must cause
A) an increase in the interest rate (i). B) a reduction in i. C) an increase in output (Y). D) a reduction in Y.
Economics
The graph below shows the production possibilities curve for an economy producing two goods, X and Y. All of the following may allow the economy to produce combination D in the future, except?
A. Lower unemployment
B. Increasing labor supply
C. Economic growth
D. Technological advances
Economics