The short-run supply curve slopes upward because

a) profits increase at higher price levels

b) productivity increases at higher price levels

c) resource costs increase at higher price levels

d) wages increase at higher output levels in the short run

Which measure is an example of expansionary fiscal policy?

a) raising taxes

b) reducing welfare payments

c) increasing unemployment compensation

d) decreasing government spending

If an expansionary policy pushes output beyond the full-employment level of GDP

a) the short-run aggregate supply curve will shift to the left

b) the natural rate of unemployment will fall

c) the economy will undergo deflation

d) production costs will decrease