If the money demand curve shifts rightward, the AD curve also shifts rightward
a. True
b. False
B
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If workers expect inflation, and negotiate wage increases that exactly match price increases, the result is a
a. horizontal aggregate supply curve at the level of potential GDP. b. vertical aggregate supply curve at the level of potential GDP. c. horizontal aggregate demand curve at the level of potential GDP. d. vertical aggregate demand curve at the level of potential GDP.
The minimum wage is a price ____, which tends to ___ the employment of unskilled workers.
A. ceiling; decrease B. ceiling; increase C. floor; decrease D. floor; increase
Which of the following statements characterizes NAFTA's economic arrangements among its member countries (Canada, Mexico, and the United States)?
a. There are no restrictions on the movement of labor from one country to another. b. There are no restrictions on the movement of capital from one country to another. c. All three countries have adopted the same identical tariff system. d. There is free trade among the three member countries.
The interest-rate-based transmission mechanism for monetary policy in the Keynesian system indicates that
A. decreases in the money supply lead to increases in the interest rate, which increases investment, which increases the level of real GDP. B. increases in the money supply lead to decreases in the interest rate, which increases investment, which increases the level of real GDP. C. increases in the money supply cause people to spend more, leading to increases in real GDP. D. increases in the money supply lead to decreases in the interest rate, which decreases investment, which decreases the level of real GDP.