A decrease in what variable will raise the quantity of goods and services supplied, and shift only the short run aggregate supply curve to the right?
The expected price level
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Suppose the government wants to maintain a balanced budget. To achieve this goal, when the economy falls into recession government would need to ________ taxes, which would cause aggregate demand to ________
A) increase; decrease B) decrease; increase C) decrease; decrease D) increase; increase
Teachers often earn less than truck drivers because
a. teachers could switch to trucking more easily than truckers could switch to teaching b. trucking is a riskier occupation c. truckers require greater education d. teachers have more job mobility e. trucking has a higher social status
Suppose that firms are located in a circle on an island. You are given transportation costs, fixed costs, variable costs, and demand (assume that customers are spread evenly along the circle). If the distance around the island is 50 miles and there are two restaurants equally spaced on the island and each of 100 people are equally spaced around the island and eat a meal a day at a restaurant, what will be the average distance traveled to and from restaurants in a day's time?
A. 50 miles B. 125 miles C. 25 miles D. 12.5 miles
Suppose a poverty program provides a basic benefit of $6,000, zero deductions, and a marginal tax rate of 0.6. The breakeven level of income is
A. $10,000. B. $3,600. C. $2,400. D. $6,000.