Long Run Aggregate Supply

The long-run aggregate supply curve would shift right if immigration from abroad

• increased or Congress made a substantial increase in the minimum wage.

• decreased or Congress abolished the minimum wage.

• increased or Congress abolished the minimum wage.

• decreased or Congress made a substantial increase in the minimum wage.

The long-run aggregate supply curve shifts right if

• immigration from abroad increases.

• the capital stock increases.

• technology advances.

• All of the above are correct.

The long-run aggregate supply curve would shift right if the government were to

• increase the minimum-wage.

• make unemployment benefits more generous.

• raise taxes on investment spending.

• None of the above is correct.

Since the end of World War II, the U.S. has almost always had rising prices and an upward trend in real GDP. To explain this

• it is only necessary that long-run aggregate supply shifts right over time.

• it is only necessary that aggregate demand shifts right over time.

• both aggregate demand and long-run aggregate supply must be shifting right and aggregate demand must shift farther.

• None of the above cases would produce rising prices and growing real GDP over time.

Which of the following would not cause a shift in the long-run aggregate supply curve?

• An increase in the available capital

• An increase in the available labour

• An increase in the available technology

• An increase in price expectations

• All of these answers shift the long-run aggregate supply curve

Which of the following factors would cause the long-run aggregate supply curve to shift to the right?

• A) A decrease in the labor force

• B) An increase in technology

• C) A decrease in capital stock

• D) An increase in inflation expectations

The long-run aggregate supply curve is vertical because

• A) it represents the relationship between price level and output in the short run.

• B) it shows that output is determined by factors other than the price level in the long run.

• C) it indicates that price level has a direct impact on output in the long run.

• D) it reflects the constant inflation rate over time.

Which of the following is a characteristic of the long-run aggregate supply curve?

• A) It is upward sloping.

• B) It is downward sloping.

• C) It is vertical.

• D) It is horizontal.

An increase in which of the following would shift the long-run aggregate supply curve to the right?

• A) Natural resources

• B) Minimum wage

• C) Unemployment benefits

• D) Import tariffs

The long-run aggregate supply curve would shift left if

• A) there is a technological advancement.

• B) the labor force decreases.

• C) capital stock increases.

• D) government reduces regulations.