How will a change in productivity increase or decrease aggregate supply?
What will be an ideal response?
If productivity increases, this change will lead to a decrease in per-unit production costs. The decline in per-unit production costs increases aggregate supply. If productivity decreases, this change will lead to an increase in per-unit production costs. The increase in per-unit production costs decreases aggregate supply.
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In 2006, the base price of a Hummer SUV was about $30,000. By 2008 as gasoline prices increased,
A) the demand curve for Hummers shifted leftward and Hummer prices decreased. B) the demand curve for Hummers shifted rightward and Hummer prices increased. C) there was a movement down along the Hummer demand curve. D) there was a movement up along the Hummer supply curve.
In the 1970s, U.S. consumers transferred their deposits from accounts in banks and thrifts to money market mutual funds because money market mutual funds: a. were more liquid
b. were less risky. c. paid higher interest rates. d. were guaranteed for a larger amount. e. were more liquid and paid higher interest rates.