Which of the following is not associated with an adverse supply shock?
a. the short-run Phillips curve shifts left
b. unemployment rises
c. the price level rises
d. output falls
Ans: a. the short-run Phillips curve shifts left
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As the price paid to a resource increases,
a. the supply of that resource will increase in the resource market. b. the supply of that resource will decrease in the resource market. c. resources will shift from other resource markets to this one. d. resources will shift from this resource market to others. e. resource usage will be unaffected.
All else equal, the jobs that are the least likely to be outsourced are those that:
A. require face-to-face communication. B. can be broken down into series of well-defined steps. C. can be done by a computer. D. do not involve face-to-face contact.
When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
Since Social Security is a pay-as-you-go program, the funds for the people retiring today
A) come from those of us working today and in the future. B) come from the Federal Reserve. C) come from import taxes. D) come from foreign sales of gold.