If European economies experience a period of sustained recession and the United States does not, what will happen in the United States?
a. an increase in aggregate supply
b. a decrease in aggregate supply
c. a decrease in aggregate demand
d. an increase in aggregate demand
c
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The current exchange rate system for most currencies is described most accurately as one of
A. fixed exchange rates. B. freely flexible exchange rates. C. gold standard rates. D. dirty or managed floating.
The U.S. terminated its role in the slave trade in the early 1800s. What is the best assessment of what would have happened had the U.S. not ended the slave trade?
a. The price of slaves would be lower and the wages of free workers would be lower. b. The price of slaves would be higher and the quantity of free workers would be lower. c. The price of slaves would be lower and the wages of free workers would be higher. d. The quantity of slaves would be higher and the quantity of free workers would be higher. e. The quantity of slaves would be lower and the wages of free workers would be lower.
The tax cuts of 1981 and 1986
a. stimulated the economy and tax revenues increased to eliminate deficits b. stimulated the economy as supply-side economists predicted it would c. depressed the economy as supply-side economists predicted it would d. had neither a noticeable stimulating nor depressing effect on the economy e. were found to be unconstitutional and so couldn't have had the effect on the economy that the President had hoped
Label the short-run supply curve.
