Use the above graph to answer question about the labor resource market faced by producers of good X. What will shift D1 to D2?
Ans:A decrease in the price of a substitute input (if the output effect > substitution effect)
An increase in the price of good X
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If the AD curve shifts rightward while the AS curve and potential GDP don't change, then
A) there will be no change in real GDP, so the economy is at the trough of the cycle. B) the expansion phase of the business cycle occurs. C) there will be no change in real GDP, so the economy is at the peak of the cycle. D) the economy will move from a peak into recession. E) real GDP does not change.
Which of the following will not shift the aggregate demand curve to the right?
A. consumers becoming more optimistic about the future B. an increase in government spending C. business optimism increases D. consumers become pessimistic about the future
The Federal Open Market Committee (FOMC) serves as the fiscal agent for the U.S. government.
Answer the following statement true (T) or false (F)
Sydney Roofers Incorporated recently purchased 100 pounds of standard roofing nails from Lowes, a nationwide hardware and building supplies store. This transaction most likely involves:
A. contract or vertical integration. B. spot exchange. C. contract. D. vertical integration.