If workers demand wage compensation in advance of inflation, the economy’s aggregate supply curve will
A. have a positive slope.
B. have a negative slope.
C. be vertical.
D. be horizontal.
Answer: C
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If the apartment owner decides to fine both the roommates if the apartment is dirty, such that now if neither of them clean they each get a 5 utility loss, what would the new equilibrium be now?
a. John cleans, Joe doesn't b. Joe cleans, John doesn't c. Neither of them clean the apartment d. Both A&B
When economic growth (a gradual shift of LRAS to the right) expands the production possibilities of an economy,
a. a higher rate of real output can be achieved in the short run, but it cannot be sustained in the long run. b. a larger output can be attained even if unemployment remains at its natural rate. c. the general level of prices will rise if the money supply is held constant. d. the equilibrium in the goods and services market will be disrupted.
If foreigners want to buy more U.S. bonds, then in the market for foreign-currency exchange the exchange rate
a. and the quantity of dollars traded rises. b. rises and the quantity of dollars traded falls. c. falls and the quantity of dollars traded rises. d. and the quantity of dollars traded falls.
The largest component of spending in GDP is
A) consumption spending. B) investment spending. C) government spending. D) net export spending.