Question

If the cost of labor increases, will the AS or AD curve shift? In which direction...

If the cost of labor increases, will the AS or AD curve shift? In which direction will it move?

A. The AS curve will shift inward
B. The AS curve will shift outward
C. The AD curve will shift inward
D. The AD curve will shift outward
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Increase in the cost of labor possibly donot make any change in the aggregate demand. Hence, the correct answer will be A. THE AS CURVE WILL SHIFT INWARD.

The AS will be affected by the cost of production like wages, materials, taxes, etc. Any increase in these expenses will lead a higher cost of production. A higher cost of production reduces the production and the supply also. Hence the AS curve will shift lefthand side or there will be inward shift in the curve.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Changes in input prices generally do not cause the LRAS curve to shift. Group of answer...
Changes in input prices generally do not cause the LRAS curve to shift. Group of answer choices True False An increase in G and/or a tax cut would be expected to result in an: Group of answer choices inward shift in AD. outward shift in AD. inward shift in AS. outward shift in AS. Federal Reserve monetary policy impacts: Group of answer choices AD AS doesn't impact either AD or AS. analysis isn't supported by the AD/AS model.
As a result of the pandemic, explain which curve(s) shift in your AS/AD model, in which...
As a result of the pandemic, explain which curve(s) shift in your AS/AD model, in which direction, and why. (Credit is given only if the explanation of why the curve(s) would shift is included. Which spending variables – C, I, G, X, M – have been affected and why? What about SRAS? LRAS?)
When Demand increases, is that a shift of the curve or a movement along the curve?...
When Demand increases, is that a shift of the curve or a movement along the curve? Determine the direction of the shift or movement. When Supply decreases, is that a shift of the curve or a movement along the curve? Determine the direction of the shift or movement. When quantity demanded increases, is that a shift of the curve or a movement along the curve? Determine the direction of the shift or movement. When quantity supply decreases, is that a...
In which direction will the transaction demand for money curve shift? Right when interest rate increases....
In which direction will the transaction demand for money curve shift? Right when interest rate increases. Right when nominal GDP increases. Left when nominal GDP increases. Left when the interest rate decreases. Right when nominal GDP decreases.
Which of the following would cause the AD curve to shift to the left? An increase...
Which of the following would cause the AD curve to shift to the left? An increase in tax rates An increase in military purchases An increase in unemployment compensation A decrease in sales taxes A decrease in potential GDP Which of the following would cause the AD curve to shift to the right? An increase in sales taxes An increase in potential GDP A decrease in unemployment compensation An increase in social security payments A decrease in military purchases
Which of the following supply shocks would shift the aggregate supply curve inward?​ a. A decrease...
Which of the following supply shocks would shift the aggregate supply curve inward?​ a. A decrease in gasoline taxes​ b. A decrease in agricultural output​ c. A decrease in the amount and cost of government regulation​ d. A decrease in the cost of raw materials​ e. ​A decrease in business taxes
1) (10 marks) Which of these factors would shift the labor demand curve out (increase labor...
1) Which of these factors would shift the labor demand curve out (increase labor demand)? a) Decrease in immigration into the United States. b) Increase in immigration into the United States c) Price of output good increases (labor is used to make this output). d) Price of output good decreases (labor is used to make this output). 2) If the marginal revenue product of labor is greater than the wage rate (M RPh > w), what should a profit maximizing...
Have a question regard ad curve and net exports will the exchange rate shift the Ad?
Have a question regard ad curve and net exports will the exchange rate shift the Ad?
A graph that shows all of the combinations of capital and labor that can be used...
A graph that shows all of the combinations of capital and labor that can be used to produce a given level output is which of the following? a. A budget line b. An indifference curve c. An isoquant d. An isocost line The least-cost method of production is shown at the point of tangency between ________ and the ________ isoquant on an isoquant diagram. a. indifference curve; highest b. budget line; highest c. budget line; lowest d. marginal cost curve;...
Describe whether the following changes cause the aggregate demand curve to increase (shift right), decrease (shift...
Describe whether the following changes cause the aggregate demand curve to increase (shift right), decrease (shift left), or neither. (a) The price level increases. (b) Investment decreases. (c) Imports decrease and exports increase. (d) The price level decreases. (e) Consumption increases. (f) Government purchases decrease. Describe whether the following changes cause the long-run aggregate supply curve to increase (shift right), decrease (shift left), or neither. (a) The price level increases. (b) The stock of capital in the economy increases. (c)...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT