Suppose that there is an increase in the costs of production that shifts the short-run aggregate supply curve left. If there is no policy response, then eventually
a. because unemployment is low, wages will be bid up and short-run aggregate supply will shift right.
b. because unemployment is low, wages will be bid down and short-run aggregate supply will shift right.
c. because unemployment is high, wages will be bid up and short-run aggregate supply will shift right.
d. because unemployment is high, wages will be bid down and short-run aggregate supply will shift right.
d
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Virtually all Federal Reserve open-market purchases and sales are conducted with government securities, mostly
A) Treasury bills. B) Treasury notes. C) Treasury bonds. D) savings bonds.
Grace is headed to work at a catering business as a waitress for $100. Her sister Paige calls and asks her to go horseback riding instead. Grace decides to go to work, which implies Grace's opportunity cost of working is:
A. less than $100. B. equal to $100. C. no more than $100. D. greater than $100.
The three variables predicted by forecasting are the timing, magnitude, and length of exchange rate movements.
a. true b. false
Ownership certificates in a company are known as:
a. charter b. stock c. dividends d. debt