During the late 1990s, actual output in the United States appears to have exceeded potential output. Under these circumstances, we would eventually expect factor prices to ___________
Fill in the blank(s) with the appropriate word(s).
Ans: rise, causing the SAS curve to shift up (to the left).
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In response to the overvalued dollar in the early 1970s, the German Bundesbank bought ________ and sold ________ to keep the exchange rate fixed, gaining international reserves
A) marks; dollars B) marks; pounds C) dollars; marks D) dollars; pounds
When households and businesses interact in product markets resources are
a. not exchanged b. flowing toward businesses c. flowing toward households d. not used at all e. flowing to both businesses and households
Refer to the above supply and demand graph. Point A represents the current equilibrium level of output of this product and point B represents the optimal level of output from society's perspective. If government decides to correct this spillover problem by subsidizing producers, then the:
A. demand curve will shift from D2 to D1. B. supply curve will shift from S1 to S2. C. supply curve will shift from S2 to S1. D. demand curve will shift from D1 to D2.
The government spends ________ of all health care dollars in the U.S.
A. 10% B. 25% C. 100% D. approximately half