If both the supply of labor and the demand for labor increase, then
A) potential GDP decreases.
B) potential GDP increases.
C) full employment decreases.
D) the impact on potential GDP is uncertain
B
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Refer to Figure 9-5. With the tariff in place, the United States consumes
A) 18 million pounds of coffee. B) 20 million pounds of coffee. C) 26 million pounds of coffee. D) 38 million pounds of coffee.
Market equilibrium: i. can never occur because there are always people who want a good but cannot afford it. ii. occurs at the intersection of the supply and demand curves. iii. is the point where the price equals the quantity.
A) ii only B) iii only C) ii and iii D) i only E) i and ii
When mismatch unemployment characterizes an economy
A) monetary and fiscal policies to raise AD are the appropriate government action. B) only monetary policy will be effective. C) monetary and fiscal policies to raise AD are not the appropriate government action. D) only general (not specific) fiscal policy will be effective.
Which of the following events shifts aggregate demand rightward?
a. an increase in government expenditures or a decrease in the price level b. a decrease in government expenditures or an increase in the price level c. an increase in government expenditures, but not a change in the price level d. a decrease in the price level, but not an increase in government expenditures