Workers and firms both expect that prices will be 3% higher next year than they are this year. As a result
A) aggregate demand will increase by 3%.
B) workers will be willing to take lower wages next year.
C) the purchasing power of wages will rise if wages increase by 3%.
D) the short-run aggregate supply curve will shift to the left as wages increase.
D
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An inferior good is ordinary:
a. always. b. if the substitution effect exceeds the income effect. c. if the income effect exceeds the substitution effect. d. never.
Answer the following statement(s) true (T) or false (F)
1. In the United States, tradeable effluent markets are far less common than they are in other countries. 2. A watershed refers to a hydrologically defined land area that drains into a specific water body. 3. The use of watershed-based NPDES permits allows for permitting multiple point sources within a single watershed. 4. According to the textbook application, efforts to restore the Chesapeake Bay have been markedly successful. 5. The presidential Executive Order that is dedicated to the restoration of the Chesapeake Bay proposes a strictly command-and-control approach to restore and protect this natural resource.
Look at the following data: GDP = $3,590 billion; consumption = $1,820 billion; exports = $450 billion; investment = $1,250 billion; government purchases = $900 billion. Imports is equal to __________ billion.
A. $830 B. $1,460 C. -$830 D. $1,240 E. none of the above
In 2011, the top 1 percent of all taxpayers in the United States faced an overall federal tax rate of:
A. 39.6 percent. B. 60.9 percent. C. 33.0 percent. D. 29.0 percent.