A temporary supply shock, such as an increase in oil prices, would
A. shift the IS curve down and to the left and leave the FE line unchanged.
B. shift the IS curve up and to the right, but leave the FE line unchanged.
C. shift the IS curve down and to the left and shift the FE line to the left.
D. have no effect on the IS curve.
Answer: D
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A) leftward shift of the labor demand curve B) rightward shift of the labor supply curve C) leftward shift of the labor supply curve D) rightward shift of the labor demand curve
At an interest rate of 6 percent, what would be the present value of receiving $22,000 twelve years from now?
A) $10,934 B) $18,645 C) $19,643 D) $20,755
Which of the following does NOT influence the price elasticity of demand?
A) the amount by which the demand curve shifts when the price of another good changes B) the number of substitutes available to consumers C) the price of the good relative to total income D) the time period buyers have to respond to a price change E) whether the good is a necessity or a luxury
Making "how much" decisions involves
A) calculating the total costs of the activity and determining if you can afford to incur that expenditure. B) calculating the total benefits of the activity and determining if you are satisfied with that amount. C) determining the additional benefits and the additional costs of that activity. D) calculating the average benefit and the average cost of an activity to determine if it is worthwhile undertaking that activity.