The wage rate paid by Walkman producers falls and at the same time the price of raw materials used in the production of Walkmans rises. You predict that the supply curve of Walkmans will
A) shift either leftward or rightward.
B) surely shift rightward.
C) surely shift leftward.
D) surely become steeper.
Question 2
The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. Lotus Land is in short-run macroeconomic equilibrium.
In the long run, if aggregate demand does not change, then Lotus Land will return to full employment as ________. A) the money wage rate rises
B) the money wage rate falls
C) businesses cut their imports
D) the government cuts taxes
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