Aggregate Supply Increases When

question 78

Multiple Choice

Aggregate supply increases when:

• A)wage rates decrease while the economy's price level remains unchanged.
• B)resource availability is reduced.
• C)there are fewer workers.
• D)there is less capital and the price level remains unchanged.
• E)there are increased inflationary expectations of labor.

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Definitions:

National Income

A measure of the total value of all goods and services produced by a country over a specific time period, often adjusted for inflation and excluding net income from abroad.

Budget Deficit

A situation where a government's expenditures exceed its revenues, resulting in the need to borrow money to cover the shortfall.

Government Spending

All expenditures made by government agencies on goods, services, and projects to achieve economic and social goals.

Tax Revenue

The revenue collected by governments from taxes, which finances public services and government commitments.