National Income and Price Determination
What could be an unintended consequence of setting minimum efficiency standards for appliances on the short-run aggregate supply?
An upward movement along the same SRAS curve because individual appliance prices will rise.
A rightward shift if consumers purchase more appliances due to increased confidence in their efficiency.
A leftward shift if producers face higher manufacturing costs that cannot be passed on fully.
A decrease in output per unit time at each price level causing the SRAS curve to shift leftward.
Contractionary fiscal policy would most likely result from which action?
Cutting corporate tax rates.
Launching new infrastructure projects.
Providing subsidies for businesses to expand operations.
Increasing taxes on corporations and individuals.
The implementation of new regulations on carbon emissions would likely cause:
An unpredictable impact on aggregate supply
A decrease in aggregate supply
An increase in aggregate supply
No change in aggregate supply
What is a likely short-term consequence of a central bank pursuing an inflation targeting policy?
Rapid increase in the money supply.
Decreased investment due to higher interest rates.
Increased predictability of inflation rates.
Immediate achievement of full employment.
Which scenario would most likely cause movement along the short-run aggregate supply curve rather than shifting the curve itself?
A change in the overall demand for goods and services
An unexpected change in government regulating policies affecting all industries
A natural disaster that temporarily halts production in certain areas of the country
A sudden decrease in subsidies given to domestic producers
Which market structure features a large number of buyers and sellers dealing in identical products where each has no influence on price?
Oligopoly
Monopoly
Perfect competition
Monopolistic competition
What would most likely cause an outward shift in short run aggregate supply (SRAS) curve?
A decrease in input prices.
An increase in money supply.
A rise in consumer confidence.
Higher interest rates.

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What would cause a movement along the Short-Run Aggregate Supply curve?
A shift in consumer and business confidence.
An increase in the overall price level.
A change in wages or raw material prices.
A change in production technology.
What would be an expected consequence of a contractionary fiscal policy that decreases government spending during an economic expansion?
Short-run aggregate supply shifts left due to decreased public investment resulting in lower productivity across sectors.
Short-run aggregate supply shifts right as reduced government spending lowers input costs for businesses.
Aggregate demand decreases, which may cool down inflation but also potentially lead to a decrease in real GDP.
Aggregate demand increases, heightening inflation risks and possibly leading to overheated economic conditions.
One possible result of wage rates going up might include shock effects impacting overall economic outcomes across different industries within our system?
Immediate cost increases causing SRAS curves shifting towards worse positions.
Deflationary trends kicking into gear thanks decreased disposable incomes among workforces.
Lower unemployment levels directly correlating with dips happening inside general price indices.
Unaffected curves despite rising labor expenses.