In the upward-sloping segment of the aggregate supply curve, a. producers can hire more workers without having to raise the wage rate. b. firms are willing to pay higher wages to get more labor. c. the economy can increase aggregate supply without prices going up. d. increases in output are linked to decreases in the price level.

In the upward-sloping segment of the aggregate supply curve, a. producers can hire more workers without having to raise the wage rate. b. firms are willing to pay higher wages to get more labor. c. the economy can increase aggregate supply without prices going up. d. increases in output are linked to decreases in the price level.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 6QR

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Similar questions

A change in which of the following would shift theshort-run aggregate-supply curve but not the longrun aggregate-supply curve?a. the labor forceb. the capital stockc. the state of technologyd. the expected price level
Draw lines for the long-run aggregate supply curve. Explain its shape and what can cause it to move in a few sentences. b. Now add in the short run aggregate supply curve. What explains its shape and what can cause it to move? c. On a new diagram, draw the aggregate demand curve. Explain its shape and what can cause it to shift. d. Why do we have short- and long-run supply curves but only one (ie not short or long-run) demand curve?
c. If aggregate demand shifts right, what is equilibrium output? d. if aggregate demand shifts left, what is equilibrium output?
Explain why the following statements are false.a. “The aggregate-demand curve slopes downwardbecause it is the horizontal sum of the demandcurves for individual goods.”b. “The long-run aggregate-supply curve is verticalbecause economic forces do not affect long-runaggregate supply.”