If the costs of production increase, there is
A) a decrease in aggregate supply and the AS curve shifts rightward.
B) a decrease in the quantity of real GDP supplied and a movement down along the AS curve.
C) a decrease in aggregate supply and the AS curve shifts leftward.
D) an increase in the quantity of real GDP supplied and a movement up along the AS curve.
E) an increase in aggregate supply and the AS curve shifts rightward.
C
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Which of the following is TRUE about firms organized along functional lines?
a. Workers develop functional expertise b. Workers can easily share information within their division c. They foster the exploitation of economies of scale d. All of the above
If the Federal Reserve wanted to expand the money supply in order to increase output, it should
a. sell government bonds, which will increase the money supply; this will cause interest rates to fall and aggregate demand to rise. b. buy government bonds, which will increase the money supply; this will cause interest rates to fall and aggregate demand to rise. c. increase the discount rate, which will raise the market rate of interest; this will cause both costs and prices to rise. d. decrease taxes, which will reduce costs and cause prices to fall.