Macro Module 15
Which of the following would cause potential output to rise overtime?
All of the above
A decrease in the short-run aggregate supply curve is illustrated by a rightward shift.
F
In the long run, wages are fixed due to labor contracts.
F
The nominal wage rate has been adjusted for inflation.
F
The reason why the short-run aggregate supply curve is positively sloped is due to the fact that wages are fully flexible in the short run.
F
Businesses are hesitant to change wages in the short run in response to short-run economic fluctuations.
T
If commodity prices were to fall, then the short-run aggregate supply curve would increase.
T
In the short run, the firm's cost of production is fixed.
T
The long-run aggregate supply curve is vertical in the long run because the aggregate price level does not affect aggregate output in the long run.
T
Which of the following is a factor that can shift the short-run aggregate supply curve to the left?
When the firms' cost of production increases
