Question

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

Select one:

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

b. decreased or Congress abolished the minimum wage.

c. increased or Congress abolished the minimum wage.

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

2)

Refer to Optimism. How is the new long-run equilibrium different from the original one?

Optimism Imagine that the economy is in long-run equilibrium. Then, perhaps because of improved international relations and increased confidence in policy makers, people become more optimistic about the future and stay this way for some time.

Select one:

a. both price and real GDP are higher

b. both price and real GDP are lower.

c. the price level is the same and GDP is higher.

d. the price level is higher and real GDP is the same.

Answer 1

1 Answer) Option C

Clarification: When there is a rush of migration, work power increments. Subsequently, there are more individuals to deliver yield and consequently since quite a while ago run total inventory increments.

Nullifying of the lowest pay permitted by law lessens the auxiliary joblessness. Thus, creation increments and LRAS movements to one side.

2 Answer) Option A

Clarification: Right now, will be an inflationary hole and the genuine Gross domestic product will be higher than potential Gross domestic product. The value level would likewise be higher due to inflationary weight.