Question
Suppose that the position of anation's long-run aggregate supply(LRAS) curve has notchanged, but itslong-run equilibrium price level has increased. FACTOR a. A rise in the
Suppose that the position of anation's long-run aggregate supply(LRAS) curve has notchanged, but itslong-run equilibrium price level has increased.
FACTOR
a. A rise in the value of the domestic currency relative to other world currencies
b. An increase in the quantity of money in circulation
c. An increase in the labor force participation rate
d. A decrease in taxes
e. A rise in real incomes of countries that are key trading partners of this nation
f. Increasedlong-run economic growth
Of the factors givenabove, which could account for the price level increase with constantLRAS?
A. Factorsb, d, and e.
B. Factorsb, c,d, and f.
C. Factors c and f.
D. Factorsa, c, and f.
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