Rising Wages and Input Prices

question 155

Multiple Choice

Rising wages and input prices:

• A) cause the aggregate supply curve to shift to the right.
• B) cause the aggregate demand curve to shift to the left.
• C) cause the aggregate demand curve to shift to the right.
• D) cause the aggregate supply curve to shift to the left.

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Definitions:

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, used in inventory valuation and other financial measurements.