If workers expect inflation, and negotiate wage increases that exactly match price increases, the result is a
a. horizontal aggregate supply curve at the level of potential GDP.
b. vertical aggregate supply curve at the level of potential GDP.
c. horizontal aggregate demand curve at the level of potential GDP.
d. vertical aggregate demand curve at the level of potential GDP.
b
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An increase in ________ reduces the money supply since it causes the ________ to fall
A) reserve requirements; monetary base B) reserve requirements; money multiplier C) margin requirements; monetary base D) margin requirements; money multiplier
That each individual should engage in economic activities in which he or she is relatively more efficient is an application of the concept of
A) competition. B) absolute advantage. C) scarcity. D) comparative advantage.
Which of the following would be added to U.S. national income?
A. An American consumer buying French wine B. An American business selling aircraft to British Airways C. A Swedish firm selling mobile phones to Americans D. A French firm buying a Swedish cellular phone
Thinking up a new idea is an example of
A. social overhead capital. B. human capital accumulation. C. an innovation. D. an invention.