If the Aggregate Supply Curve Shifts Outward, Then Unemployment

question 16

Multiple Choice

If the aggregate supply curve shifts outward, then unemployment

• A)and inflation will both decrease.
• B)and inflation will both increase.
• C)will increase and inflation will decrease.
• D)will decrease and inflation will increase.

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Definitions:

Apple Orchard

A type of farm where apple trees are cultivated primarily for the production of apples.

Honey

A sweet, viscous food substance produced by bees and some other insects from the nectar of flowers.

Apples

A sweet, edible fruit produced by an apple tree, typically round in shape and available in many varieties.

Quasi-Rents

Earnings generated from a leased asset over and above the economic cost of utilizing the asset, often temporary due to market circumstances.