For a given inflation rate, if increasing threats to domestic security cause the government to increase military spending, then the ________ shifts ________.
A. short-run aggregate supply line; upward
B. short-run aggregate supply line; downward
C. aggregate demand curve; right
D. aggregate demand curve; left
Answer: C
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J.P. Morgan was instrumental in the formation of:
a. Ford Automobiles. b. U.S. Steel Corporation. c. Standard Oil. d. Swift Meats.
Which of the following can be categorized as derived demand?
a. A decline in the demand for building products following a drop in housing demand. b. An increase in demand for gasoline following a fall in the price of petroleum products. c. An increase in the demand for woolens in winter. d. A decline in the demand for labor on account of outrageous demands of trade unions.
If the government were to decrease corporate income tax, we would predict a:
A. shift in aggregate demand to the left. B. downward movement along the aggregate demand curve. C. shift in aggregate demand to the right. D. shift straight down of aggregate demand.
?Assume the economy is experiencing an inflationary gap, classical economists believe that:
A. ?flexible wages will restore full employment. B. ?the federal government should decrease spending to shift the aggregate demand curve leftward. C. ?the Federal Reserve should lower the interest rate. D. ?the federal government should increase spending to shift the aggregate demand curve rightward.