Refer to Figure 9.2. A movement from point b to point a could be caused by a(n)
A) increase in government spending.
B) decrease in the price of oil.
C) increase in taxes.
D) a massive crop failure.
D
You might also like to view...
The market for apples is an example of ________
A) perfect competition B) monopolistic competition C) monopoly D) oligopoly
All of the following are problems associated with commodity money EXCEPT
A) it is a cumbersome form of payments system. B) commodities tend to have little value in and of themselves. C) its value is dependent on its purity. D) costs are incurred in certifying the purity and weight of commodity money.
If a fixed money growth rate of 4 percent per year is followed and the growth rate of the natural level of real GDP is 4 percent per year, the average rate of inflation is: a. 8 percent
b. 4 percent. c. zero. d. 1-2 percent.
If we consider the specificfactors model, the effect of an increase in exports on the real wages of workers:
a. is inconclusive because some goods' prices will be higher compared with the wage, and some will be lower. b. absolutely increases the buying power of the real wage. c. absolutely decreases the buying power of the real wage. d. will encourage foreign workers to emigrate to the United States.