In a demand-pull inflation, money wage rates rise because
A) a decrease in aggregate demand creates a labor shortage.
B) an increase in aggregate demand creates a labor surplus.
C) an increase in aggregate demand creates a labor shortage.
D) a decrease in aggregate demand creates a labor surplus.
E) an increase in aggregate supply creates a labor shortage.
C
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Positive analysis is concerned with "what ought to be," while normative analysis is concerned with "what is."
Indicate whether the statement is true or false
When the price level in the United States falls relative to the price level of other countries, ________ will fall, ________ will rise, and ________ will rise
A) exports; imports; net exports B) net exports; imports; exports C) net exports; exports; imports D) imports; exports; net exports
In the view of the Classical economists, a increase in aggregate demand leads to
A) lower output levels. B) a higher price level. C) higher output levels. D) a lower price level.
When there is a high degree of complementarity between two products, then the indifference curves will:
A. be reasonably close to straight lines. B. be perfectly straight lines. C. bend sharply. D. be positively sloped.