A deep recession hits the world economy, and real GDP in the rest of the world decreases. In the United States,
A) aggregate supply increases and aggregate demand decreases, so the effect on the price level is uncertain.
B) aggregate supply and aggregate demand both decrease, and the price level rises.
C) aggregate supply and aggregate demand both increase, and the price level rises.
D) aggregate supply decreases while aggregate demand does not change, and the price level rises.
E) aggregate demand decreases while aggregate supply does not change, and the price level falls.
E
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To record adjusting journal entries in QuickBooks, select:
a. Company Center, Journal Entry icon b. Accountant menu, Make General Journal Entries c. Banking section of the Home page, Journal Entry icon d. Company section of the Home page, Journal Entry icon
Given that tariffs and quotas cost consumers and that they are a grossly inefficient means for creating or preserving jobs , citizens nevertheless allow these policies to exist because
A. the costs of tariffs and quotas are diffused throughout an entire nation, while the benefits are concentrated. B. they know that petitioning the government to do the right thing is futile. C. incentives to organize around the issue of trade policy are asymmetric. D. all of the above. E. A and C only.
Inheritance accounts for about
A. 10 percent of income inequality. B. 15 percent of income inequality. C. 5 percent of income inequality. D. 30 percent of income inequality.
If TR < TC, a firm would ________ in the short run and ________ in the long run.
A. either operate or shut down; contract B. operate; contract C. shut down; contract D. shut down; expand