The rate at which aggregate supply changes to restore equilibrium at potential output depends crucially on _____
Fill in the blank(s) with the appropriate word(s).
how quickly real wages adjust to restore full employment in the labor market.
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A fall in the price of milk, used in the production of ice cream, will:
A. Decrease the supply of ice cream B. Increase the supply of ice cream C. Cause a movement along the supply curve of ice cream D. Have no effect on the supply of ice cream
Refer to Table 9.2. (Data are expressed in billions of dollars.)Table 9.2 Full Employment Income (Output)Consumers Desire to SpendInvestors Desire to SpendTotal Private SpendingTotal Saving$500$300$250$________$________600375250$________$________700450250$________$________800525250$________$________Given the information in Table 9.2, saving equals investment at an income of
A. $700 billion. B. $800 billion. C. $500 billion. D. $600 billion.