In the mainstream view, one major source of instability in the macro economy is the volatility of:
A. Product prices
B. Investment spending
C. Consumer spending
D. Labor wages
B. Investment spending
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Right-to-work laws
A. help unions to organize. B. make it harder for unions to organize. C. have virtually no effect on union organizing.
The longer any price change persists, the
A. more likely price will return to its original level. B. greater is the price elasticity of demand. C. more difficult it is to alter quantity demanded. D. lower is the price elasticity of demand.
Refer to Figure 14.2. Other things equal, a movement from point C to point B would be caused by
A) an increase in the price level. B) a decrease in the price level. C) a positive supply shock. D) a negative supply shock.
The economic expansion which began in March 1991 was unusual in that
A) the first year and a half of the expansion was very weak and unemployment did not peak until 16 months after the trough. B) the inflation rate decelerated from 1993 to 1997 rather than accelerating. C) monetary policy was tightened substantially in 1994 even though there was no evidence of accelerating inflation. D) all of the above.