Real GDP per person tells us the income and expenditure of the average person in the economy
a. True
b. False
Indicate whether the statement is true or false
True
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
The creation of private property rights corrects negative externality problems in many cases because they
a. cannot create negative externalities b. create a strong incentive for the private owners to maintain the property c. can force the government to compensate the owners for the externality costs d. encourage people to become free riders e. always lead to the social optimal price and output levels
Which of the following indexes is best suited to measure wage inflation?
a. The Producer Price Index b. The International Price Index c. The Employment Cost Index d. The Personal Consumption Expenditure Index
A major hurricane causes production problems in Gulf Coast region of the United States. This would cause
A. the short-run aggregate supply curve to shift to the left, but there would be no effect on the long-run aggregate supply curve. B. the short-run aggregate supply curve to shift to the left, and the long-run aggregate supply curve would shift to the right. C. both the short-run and the long-run aggregate supply curves to shift to the left, but the long-run aggregate supply curve would shift more than the short-run curve. D. both the short-run and the long-run aggregate supply curves to shift to the right in equal amounts.