If Workers and Other Resource Suppliers Negotiate Higher Resource Payments,which

question 148

Multiple Choice

If workers and other resource suppliers negotiate higher resource payments,which of the following is true?

• A)The long-run aggregate supply curve will shift rightward.
• B)There will be a leftward movement along a fixed short-run aggregate supply curve.
• C)The long-run aggregate supply curve will shift leftward.
• D)The short-run aggregate supply curve will shift rightward.
• E)Higher resource payments will cause the price level to rise.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price within a specific time period.

Surplus

An excess of production or supply over demand.

Quantity Supplied

The amount of a good or service that producers are willing to sell at a given price over a specific period.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level, at a given time.