Suppose a shift in aggregate demand creates an economic contraction. If policymakers can respond with sufficient speed and precision, they can offset the initial shift by shifting
a. aggregate supply right.
b. aggregate supply left.
c. aggregate demand right.
d. aggregate demand left.
c
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If total output increases from $1 trillion to $2 trillion as population increases from 100 million to 250 million, then output per person:
A. doubles. B. remains constant. C. increases, but by less than 100 percent. D. decreases
Many economists argue that the best way to correct employer discrimination is to
a. pass comparable worth laws b. increase the price of output, thereby raising profit c. shift the marginal revenue product curve of the unfavored group to the right d. shift the demand for labor to the left e. allow the market mechanism to equalize wages
Which of the following groups does not have an interest in restricting free trade?
A. People who buy the imported product. B. Producers in import-competing markets. C. Communities where workers in import-competing markets live. D. Workers in import-competing markets.
Dividing the number seventy-two by an interest rate yields
A. the number of years it would take an investment to double in value. B. the annual payment required to pay off a loan at that interest rate. C. a good measure of the level of risk in the investment proposal. D. all of these options are correct.