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2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts

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Question 10

All other things being equal, a sustained increase in labor productivity in an economy is most likely to lead to

a rise in the rate of cost-push inflation.

a rightward shift of the Long-Run Aggregate Supply (LRAS) curve.

an increase in the country's deficit on the current account of the balance of payments.

a rise in the natural rate of unemployment.

2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts Questions

  1. A Level
  2. /Economics
  3. /2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts