B
Buttercup101
Guest
What effects would each of the following have on aggregate supply in the short run? Assume the economy is initially operating at its full employment level of output. What happens in the long run as our economy returns to its potential level of output?
1. A reduction in interest rates at each price level.
A major increase in Federal spending for healthcare
3. The exexpectationf rapid ininflation
4. The complete ddisintegrationOPEC, causing ol prices to fall by one-half.
5. A 10% reduction in personal tax rates.
6. A sizeable increase in labor productivity(with no nominal wages)
7. A 12% increase in nominal wages (with no change in productivity)
8. Depreciation in the international value of the dollar.
You dont have to asnwer ever question but any one can help =)
1. A reduction in interest rates at each price level.
A major increase in Federal spending for healthcare
3. The exexpectationf rapid ininflation
4. The complete ddisintegrationOPEC, causing ol prices to fall by one-half.
5. A 10% reduction in personal tax rates.
6. A sizeable increase in labor productivity(with no nominal wages)
7. A 12% increase in nominal wages (with no change in productivity)
8. Depreciation in the international value of the dollar.
You dont have to asnwer ever question but any one can help =)