If declining labor union membership causes workers to lose bargaining power, resulting in lower wages, production costs will:
A) increase, and the SRAS curve will shift to the left, decreasing equilibrium GDP and the aggregate price level.
B) increase, and the SRAS curve will shift to the left, decreasing equilibrium GDP and the aggregate price level
C) fall, there will be a downward movement along the SRAS curve, equilibrium GDP will increase, and the aggregate price level will fall
D) fall, there will be a downward movement along the SRAS curve, equilibrium GDP will increase, and the aggregate price level will fall.
E) not change, and the AD curve will shift to the right, increasing equilibrium GDP and the aggregate price level
F) not change, and the AD curve will shift to the right, increasing equilibrium GDP and the aggregate price level.
G) fall, and the SRAS curve will shift to the right, increasing equilibrium GDP and lowering the aggregate price level.
H) fall, and the SRAS curve will shift to the right, increasing equilibrium GDP and lowering the aggregate price level
Correct Answer:
Verified
Q147: (Figure: Shifts of the AD-AS Curves) Use
Q148: (Figure: Shifts of the AD-AS Curves) Use
Q149: Which curve is easiest to shift through
Q150: According to the interest rate effect, an
Q151: The intersection of the aggregate demand curve
Q153: (Figure: Aggregate Supply) Use Figure: Aggregate Supply.
Q154: (Figure: Aggregate Supply) Use Figure: Aggregate Supply.
Q155: The level of output that is produced
Q156: The point where the long-run aggregate supply
Q157: A rise in labor productivity will MOST
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents