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- Subject
- Supply and Demandeconomics-mcqs › supply-and-demand
- Published
- 29 May 2019
- Last updated
- 28 May 2026
How would raising unemployment benefits and reducing the motivation to work affect the aggregate supply curve?
Multiple choice question for Supply and Demand. Select an option, then review the explanation below.
Explanation
Increasing unemployment benefits and lowering the incentive to work typically leads to a higher willingness to supply labor, which shifts the aggregate supply curve to the right. This reflects an increase in production capacity or willingness to produce at every price level.
More Supply and Demand MCQs
Practice related questions from the same subject.
- 1.What is the typical shape of a demand curve?
- 2.What term describes a company earning profits beyond its normal profit level?
- 3.How does an increase in marginal cost affect output, and how does an increase in marginal revenue impact output?
- 4.Marginal revenue refers to the ________ resulting from producing an additional ________ of output.
- 5.What are firms generally assumed to do with their costs and profits?