19. Which set of changes is definitely predicted to raise Real GDP in the short run? a. Wealth increases and there is an adverse supply shock. b. Individuals expect higher (future) incomes and wage rates fall. c. Business taxes rise and wage rates fall. d. The U.S. dollar appreciates and there is a beneficial supply shock. e. none of the above 20. Which set of changes is definitely predicted to raise the price level in the short run? a. The money supply falls and wage rates rise. b. The money supply falls and wage rates fall. c. Labor productivity rises and there is a beneficial supply shock. d. The prices of nonlabor inputs rise and individuals expect higher (future) incomes.

19. Which set of changes is definitely predicted to raise Real GDP in the short run? a. Wealth increases and there is an adverse supply shock. b. Individuals expect higher (future) incomes and wage rates fall. c. Business taxes rise and wage rates fall. d. The U.S. dollar appreciates and there is a beneficial supply shock. e. none of the above 20. Which set of changes is definitely predicted to raise the price level in the short run? a. The money supply falls and wage rates rise. b. The money supply falls and wage rates fall. c. Labor productivity rises and there is a beneficial supply shock. d. The prices of nonlabor inputs rise and individuals expect higher (future) incomes.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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