What is the principal source of change in productivity growth?
Explain what happens to the short-run aggregate supply curve when output exceeds its potential.
In the aggregate demand-aggregate supply model,if entrepreneurs become convinced that future profitability of capital has increased A) current output will fall, but the price level will rise. B) current output will rise, but the price level will fall. C) current output and the price level will both rise. D) current output and the price level will both fall.
When output exceeds its full-employment level A) the short-run aggregate supply curve shifts to the left. B) wages fall. C) the short-run aggregate supply curve shifts to the right. D) aggregate supply exceeds aggregate demand.