Refer to Figure 16-1. An increase in taxes would be depicted as a movement from ________, using the static AD-AS model in the figure above
A) C to D B) E to B C) B to C D) A to B E) B to A
E
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If the disposable income decreases, then
A) the demand for loanable funds increases. B) the quantity of loanable funds demanded increases. C) the supply of loanable funds increases. D) the quantity of loanable funds supplied decreases. E) the supply of loanable funds decreases.
If Brazil has a comparative advantage relative to Cuba in the production of sugar cane, then
A) the opportunity cost of production for sugar cane is lower in Brazil than in Cuba. B) the implicit costs of production for sugar cane are lower in Brazil than in Cuba. C) the explicit cost of production for sugar cane is lower in Brazil than in Cuba. D) the average cost of production for sugar cane is lower in Brazil than in Cuba.
Which of the following is true of a recessionary period?
a. It is usually accompanied by an improvement in the value of an economy's currency. b. It is usually accompanied by low levels of inflation c. It is usually accompanied by a dramatic decline in the stock of inventories. d. It usually lasts for a few months. e. It leads to a drastic decline in government spending.
If the wage rate rises and there is a net decrease in the use of capital by a firm
A. the substitution effect outweighed the output effect. B. the output effect outweighed the substitution effect. C. the substitution and output effects were equal. D. there is no way to determine the relative strengths of the output and substitution effects.