A. monetary growth
B. better technology
C. more capital
D. higher labor supply
Aggregate Supply, Unemployment And Inflation
Aggregate Supply, Unemployment And Inflation
A. higher, lower
B. higher, higher
C. lower, lower
D. zero, zero
A. a nominal money stock target
B. a balanced budget
C. an inflation target
D. The pursuit of a target real interest rate
A. the contention that workers in one industry may be unwilling to accept a wage cut unless they know that workers in other industries are receiving similar cuts
B. employment contracts that stipulate workers’ wages usually for a period of one to three years
C. unspoken agreements between workers and firms that firms will not cut wages
D. the incentive that firms may have to hold wages above the market clearing rate
A. Shifts in aggregate supply
B. changes in export demand due to the state of the world economy
C. business confidence
D. business expectations
A. a high rate of inflation: along with a low rate of unemployment
B. simultaneously low rates of inflation and unemployment
C. simultaneously high rates of inflation and unemployment
D. a high rate of unemployment along with a low rate of inflation
A. Vertical or nearly vertical
B. upward sloping
C. downward sloping
D. horizontal or nearly horizontal
A. negative relationship between the inflation rate and labor demand
B. positive relationship between labor supply and the inflation rate
C. positive relationship between the inflation rate and the employment the
D. negative relationship between the inflation rate and the unemployment rate
A. that can be produced if structural unemployment is zero
B. that can be produced at a zero-unemployment rate
C. that can be sustained in the long run without inflation
D. that can be sustained in the long run, if the inflation rate is zero
A. the long-run aggregate demand curve is horizontal at the natural rate of inflation
B. the long run aggregate demand curve is vertical at potential GDP
C. the long run aggregate demand curve is vertical at potential GDP
D. The long run supply curve is horizontal at the natural rate of inflation
