?
Macro AD-AS Model
In Exhibit 10A-4, the self-correction argument is that in the long run, competition:
A. from unemployed workers causes an increase in nominal wages and a leftward shift in SRAS.
B. from unemployed workers causes a rightward shift in SRAS.
C. among firms for workers increases nominal wages and this causes a leftward shift in SRAS.
D. among consumers causes an increase in the CPI and a rightward shift in SRAS.
Answer: B
You might also like to view...
The longer the time that has elapsed since the price of a good changed, the
A) more elastic the demand for that good. B) steeper the demand curve. C) less elastic the demand for that good. D) smaller the amount of that good bought. E) fewer substitutes available for the good.
If preferences are transitive, indifference curves
A) intersect at the optimum consumption bundle. B) do not intersect. C) intersect where the marginal rate of substitution for each indifference curve is equal. D) intersect at the equilibrium consumption bundle.
Refer to the Article Summary. When does the Treasury Department borrow? Why would the Treasury have to borrow more than it estimated, as was indicated by its letter to Congress to raise the debt ceiling? When would the Treasury repay what it borrowed
, and who is it repaying?
Answer the following statement(s) true (T) or false (F)
1. You can often predict people’s behavior if you know what their incentives are. 2. Lower prices are negative incentives to producers but positive incentives to consumers. 3. Positive incentives are generally considered more effective than negative incentives. 4. An absolute advantage occurs when a person, a region, or country can produce a good or service at a lower opportunity cost than others.