Exam 4 pt. II

If the price of crude oil decreases, then this would most likely:

Increase aggregate supply in the U.S.

A fall in the prices of inputs will shift the aggregate:

Supply curve rightward

A decrease in aggregate supply means:

The real domestic output would decrease and the price level would rise

The economy experiences a decrease in the price level and an increase in real domestic output. Which is a likely explanation?

Business costs and wage rates have decreased

The U.S. economy was able to achieve full employment with relative price level stability because aggregate:

Demand increased and aggregate supply increased

Demand-pull inflation is illustrated in the short run aggregate supply-aggregate demand model as a shift of the aggregate:

Demand to the right

A decrease in business taxes will tend to:

Increase aggregate demand and increase aggregate supply

If Congress passed new laws significantly increasing the regulation of business, this action would tend to:

Increase per-unit production costs and shift the aggregate supply curve to the left