If nominal wages and salaries are fixed as firms change product prices, the short-run aggregate supply curve (SRAS) is:
a. vertical.
b. positively sloped.
c. negatively sloped.
d. horizontal.
b
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Fluctuations in economic activity can result from
A) increases in the price of oil. B) wars. C) the loss of crops due to drought or insects. D) all of the above.
Refer to the graph shown. To maintain the price of euros at $1.20, the European Central Bank must buy:
A. Q2 euros. B. Q0 - Q2 euros. C. Q1 - Q0 euros. D. Q1 - Q2 euros.
Social Security taxes are
A. progressive because all workers pay the tax. B. regressive because higher income workers don't pay the tax. C. proportional because everyone is charged the same percentage tax rate. D. regressive because higher income workers pay taxes on a smaller percentage of their income.
If country A has a higher opportunity cost in producing good X than does country B, then we know that
A. country B has an absolute advantage in the production of product X. B. country B has a comparative advantage in the production of product X. C. country A has an absolute advantage in the production of product X. D. country A has a comparative advantage in the production of product X.