Refer to the graph to the right.The shift from AS, to AS₂ shown in the diagram is referred to as a(n)A. decrease in unit costs.B. increase in unit costs.O C. positive aggregate supply shock.OD. negative aggregate supply shock.***Price LevelP₂points) possibleAReal GDPAS₁ AS₂1 Refer to the graph to the right.The shift from AS, to AS₂ shown in the diagram is referred to as a(n)A. decrease in unit costs.B. increase in unit costs.O C. positive aggregate supply shock.OD. negative aggregate supply shock.***Price LevelP₂points) possibleAReal GDPAS₁ AS₂1

When wage rates rise slower than the increase in labour productivity, the O A. output gap increases. OB. AD curve shifts left. OC. output gap falls. D. AS curve shifts downward. OE. AS curve shifts upward.

When wage rates rise slower than the increase in labour productivity, the O A. output gap increases. OB. AD curve shifts left. OC. output gap falls. D. AS curve shifts downward. OE. AS curve shifts upward.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter23: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 3CQQ

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Question

Refer to the graph to the right.
The shift from AS, to AS₂ shown in the diagram is referred to as a(n)
A. decrease in unit costs.
B. increase in unit costs.
O C. positive aggregate supply shock.
OD. negative aggregate supply shock.
***
Price Level
P₂
points) possible
A
Real GDP
AS₁ AS₂
1

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