Author Question: If nominal GDP is less than real GDP, then the GDP deflator will be greater than 100. Indicate ... (Read 88 times)

ereecah · **on:** Jun 29, 2018

If nominal GDP is less than real GDP, then the GDP deflator will be greater than 100.

Indicate whether the statement is true or false

Question 2

Explain how each of the following events would affect the long-run aggregate supply curve.

a. A lower price level
b. A decrease in the labor force
c. A decrease in the quantity of capital goods
d. Technological change

tandmlomax84 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

FALSE

Answer to Question 2

a. A lower price level would cause a movement along the long-run aggregate supply curve.
b. A decrease in the labor force would cause the long-run aggregate supply curve to shift to the left.
c. A decrease in the quantity of capital goods would cause the long-run aggregate supply curve to shift to the left.
d. Technological change would cause the long-run aggregate supply curve to shift to the right.