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Author Question: What are three causes of supply-side inflation? What will be an ideal ... (Read 38 times)

CBme

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on: Jun 30, 2018
What are three causes of supply-side inflation?
 
  What will be an ideal response?

Question 2

A temporary embargo on oil from the Middle East going in to the United States would
 
  A) shift both the short-run and long-run aggregate supply curves to the left.
  B) shift only the short-run aggregate supply curve to the left.
  C) shift the long-run aggregate supply curve to the right.
  D) shift only the long-run aggregate supply curve to the left.


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dudman123

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Reply #1 on: Jun 30, 2018
Answer to Question 1

Shifting the LRAS to the left can be caused by any of the following factors: a reduction in the labor force, a reduction in the labor force participation rate, higher marginal taxes on businesses, and government programs which act as incentives for unemployed workers to not go back to work.

Answer to Question 2

B


CBme

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Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

mcabuhat

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Reply 3 on: Yesterday
Gracias!

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