Suppose That There Is an Increase in the Costs of Production

question 116

Multiple Choice

Suppose that there is an increase in the costs of production that shifts the short-run aggregate supply curve left.If there is no policy response,then eventually

• A)because unemployment is low,wages will be bid up and short-run aggregate supply will shift right.
• B)because unemployment is low,wages will be bid down and short-run aggregate supply will shift right.
• C)because unemployment is high,wages will be bid up and short-run aggregate supply will shift right.
• D)because unemployment is high,wages will be bid down and short-run aggregate supply will shift right.

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Definitions:

Adenine

A purine nucleobase, one of the four building blocks of DNA and RNA, involved in cellular energy transfer and signaling.

Ribose

Ribose is a five-carbon sugar essential for the structure of RNA and plays a role in the synthesis of ATP, an energy-carrying molecule in cells.

DNA

Deoxyribonucleic acid, a molecule that contains the instructions an organism needs to develop, live, and reproduce, made up of two long strands forming a double helix.

Replication

In the context of molecular biology, replication refers to the process by which a cell duplicates its DNA, allowing genetic information to be passed on to the next generation of cells.