An Increase in G or G' Shifts the Output Supply

question 29

Multiple Choice

An increase in G or G' shifts the output supply curve to the right because

• A) lifetime wealth increases, a positive income effect that shifts labour supply to the right.
• B) lifetime wealth decreases, a negative income effect that shifts labour supply to the left.
• C) lifetime wealth decreases, a negative income effect that shifts labour supply to the right.
• D) the increase in the real interest rate shifts output supply.
• E) the decrease in the real interest rate shifts output supply.

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Definitions:

Little's Law

A fundamental principle in queueing theory stating that the long-term average number of items in a queuing system is equal to the long-term average effective arrival rate multiplied by the average time an item spends in the system.

Toy Store

A retail business specializing in the sale of toys and games for children of various ages.

24-Hour Supermarket

A retail grocery store that operates continuously, day and night, providing accessibility to shoppers at any time.

Queue Discipline

The rule or priority system used to manage the order in which entities (such as people, data packets, or products) are processed or served in a queue.