Which of the Following Is a Statement with Positive Economic

question 210

Multiple Choice

Which of the following is a statement with positive economic analysis?

• A) Lower wages increase employment and reduce the unemployment rate.
• B) Slower money growth reduces inflation.
• C) A reduction in the size of the budget deficit will reduce interest rates.
• D) all of the above

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Definitions:

Short-Run Aggregate-Supply Curve

A curve that shows the relationship between the total output of goods and services and the price level for output in the short run.

Wages Are Sticky

The theory that salaries do not adjust quickly to changes in market conditions, leading to unemployment or surpluses.

Short-Run Aggregate Supply Curve

A graphical representation showing the relationship between the total production of goods and services and the price level for output in the short run.

Actual Price Level

The current general price of goods and services in the economy.