The SRAS curve is upward sloping, there is a liquidity trap, and investment spending is sensitive to changes in the interest rate. According to the monetarist transmission mechanism, if the money supply increases the AD curve __________ and the price level __________
A) does not change; does not change
B) shifts to the left; falls
C) shifts to the right; rises
D) does not change; rises
E) none of the above
C
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A clear conclusion from offshoring debates and analyses is that:
a. Offshoring increases overall unemployment in the nation from which offshoring takes place. b. Offshoring's main effect is to decrease GDP in the nation from which offshoring takes. c. Offshoring could increase or decrease unemployment in the nation from which it takes place; the result depends on the circumstances. d. Offshoring results in net losses to the global economic community.
A demand curve for concert tickets would show the
What will be an ideal response?
Alexis de Tocqueville observed in his Democracy in America: "There is no country in which everything can be provided for by the laws, or in which political institutions can prove a substitute for
A) common sense and morality."
B) economic development."
C) police and prisons."
D) supply and demand."
E) the private pursuit of private interests."
Use the information provided in Table 7.4 below to answer the question(s) that follow. Table 7.4Inputs Required to Produce a Product Using Alternative TechnologiesTechnologyUnits of CapitalNumber of EmployeesA 836B 1224C 1616D 24 12Refer to Table 7.4. If the hourly price of capital is $40 and the hourly wage rate is $10, which production technology should be selected?
A. A B. B C. C D. D