A low factor- utilization rate describes _ in factor markets, which causes factor prices to and shifts the aggregate supply curve to the .
A)excess supply; fall; left
B)excess supply; rise; right
C)excess demand; fall; right
D)excess demand; rise; right
E)excess supply; fall; right

Question

Quizplus · Accepted Answer

A low factor-utilization rate indicates excess supply in factor markets, leading to falling factor prices and shifting the aggregate supply curve to the right.

A Low Factor- Utilization Rate Describes _ in Factor Markets