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:

Jobs Argument

A perspective or argument centered on the impacts of economic policies or business decisions on employment levels.

Infant-Industry

An economic rationale for trade protectionism arguing that new industries need to be shielded from international competition to allow them to grow and become competitive.

Infant-Industry Argument

The justification for protective tariffs to shield emerging domestic industries from international competition until they become competitive.

Free Trade

The policy of allowing goods and services to be traded between countries with few or no restrictions or tariffs.