Given the following, state whether the SAS curve will shift left, right, or not at all: 1.Productivity rises by 2% while wages rise by 5%. 2.Productivity falls by 1% while wages fall by 4% 3.Government imposes new taxes on the extraction of natural gas. 4.Incomes in Mexico increase. 5.Costs of imported cooking oils increases. 6.The U.S. Fed loosens monetary policy (increases the money supply)

Given the following, state whether the SAS curve will shift left, right, or not at all: 1.Productivity rises by 2% while wages rise by 5%. 2.Productivity falls by 1% while wages fall by 4% 3.Government imposes new taxes on the extraction of natural gas. 4.Incomes in Mexico increase. 5.Costs of imported cooking oils increases. 6.The U.S. Fed loosens monetary policy (increases the money supply)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 42CTQ: On a microeconomic demand curve, a decrease in price causes an increase in quantity demanded because...

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