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

[ereecah]

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]

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.

[ereecah]

Gracias!

[rachel]

Thanks for the timely response, appreciate it