An increase in aggregate supply can lead to lower output and higher unemployment in the long run.Question 47Answera.Trueb.False

Which factor will increase short-run aggregate supply?Choose one answer from the options below.a law that requires health insurance for all employeesan increase in the aggregate price levela large decrease in the price of oilan increase in the minimum wageBackNext

The aggregate supply (AS) curve presented in the chapter has its particular shape because of which of the following explanations?Question 10Select one:a.An increase in the nominal wage causes a reduction in the amount of output that firms are willing to produce.b.A reduction in the aggregate price level causes a reduction in nominal money demand and a reduction in the interest rate.c.An increase in the aggregate price level will cause an increase in the interest rate and a reduction in output.d.An increase in output causes an increase in employment, a reduction in unemployment, an increase in the nominal wage and an increase in the price level.

An increase in government spending can lead to an increase in aggregate demand (AD).Question 22Answera.Trueb.False

The level of long-run aggregate supply is affected by all of the following except:Question 5Answera.changes in the capital stock.b.changes in the number of workers.c.changes in the price level.d.changes in the technology.

Complete the following statement:An increase in investment will make workers more   , which will shift the long-run aggregate    to the    and    real   .Submit