A movement down and to the left along the aggregate supply curve will occur when a. a change in fiscal policy causes aggregate expenditure to increase b. a decrease in real GDP causes unit costs to fall c. world oil prices fall, thus decreasing the price level d. firms decide to produce less than before at each price level
A movement down and to the left along the aggregate supply curve will occur when a. a change in fiscal policy causes aggregate expenditure to increase b. a decrease in real GDP causes unit costs to fall c. world oil prices fall, thus decreasing the price level d. firms decide to produce less than before at each price level
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
- A movement down and to the left along the
aggregate supply curve will occur when
a. |
a change in fiscal policy causes aggregate expenditure to increase |
|
b. |
a decrease in real GDP causes unit costs to fall |
|
c. |
world oil prices fall, thus decreasing the price level |
|
d. |
firms decide to produce less than before at each price level |
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