A decrease in the wage rate causes the budget line to
a. become flatter.
b. become steeper.
c. shift upward.
d. shift downward.
a. become flatter.
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Relative to free trade, domestic producers of a good are ________ off with a tariff because of the ________
A) better; higher price and greater quantity sold B) better; higher price and smaller quantity sold C) better; lower price and greater quantity sold D) worse; lower price and smaller quantity sold E) worse; higher price and greater quantity sold
Suppose that data for a particular economy over time suggest that its aggregate demand curve is both steep and shifts frequently. We might reasonably infer that ________
A) the central bank has an activist emphasis on the stability of economic activity B) wages and prices are remarkably flexible C) policy lags are quite long D) all of the above E) none of the above
Double taxation of corporate earnings
A. tends to restrict the activities of corporate firms. B. causes stockholders to earn a lower return than they would on other securities of comparable risk. C. results in more investment in research and development. D. All of these responses are correct.
Technological advances: a. Shift only the short run aggregate supply curve to the right
b. Shift only the long run aggregate supply curve to the right. c. Shift both short run and long run aggregate supply curves to the right. d. Do none of the above