Identify changes in three variables that would cause the FE line to shift to the right.
What will be an ideal response?
An increase in productivity, an increase in the supply of capital, or an increase in the supply of labor would increase the full-employment level of output, as illustrated by a rightward shift in the FE line.
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What are some of the long-run costs of tariffs?
What will be an ideal response?
Market signaling
A) is a way of conveying information to other parties in a transaction where asymmetric information exists. B) represents a dominant strategy in a multi-player game. C) results in an optimum solution to a beach kiosk scenario. D) None of the above
According to the assumptions of the quantity theory of money, if the money supply increases 5 percent, then
a. both the price level and nominal GDP would rise by 5 percent. b. the price level would rise by 5 percent and nominal GDP would be unchanged. c. the price level would be unchanged and nominal GDP would rise by 5 percent. d. both the price level and nominal GDP would be unchanged.
Which of the following refers to the extent to which an individual's life is intertwined with a large cohesive group?
a. Protectionism b. Collectivism c. Isolationism d. Pluralism e. Interventionism