Suppose the economy is at a short-run equilibrium GDP that lies below potential GDP. Which of the following will occur because of the automatic mechanism adjusting the economy back to potential GDP?
A) Output will decrease.
B) Short-run aggregate supply will shift to the right.
C) Unemployment will rise.
D) Prices will increase.
B
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The Endangered Species Act is an attempt to
A) protect endangered species against greedy loggers, farmers, and business people. B) protect endangered species from the overzealousness of many environmentalists. C) protect species endangered because there are no private property rights on them. D) prevent some people from earning a good living.
A move from E to F represents
A. an increase in quantity supplied.
B. a decrease in quantity supplied.
C. an increase in supply.
D. a decrease in supply.
An unexpected increase in the price level that temporarily lowers real wages and induces more employment and output in an economy, occurs in
a. nominal-supply theory. b. stagflation. c. misperceptions theory. d. sticky-wage theory.
If a British student pays her way to attend Harvard University, her action will:
A) cause the exchange rate of the British pound to rise. B) cause the exchange rate of the U.S. dollar to fall. C) change the supply of dollars in the foreign currency market. D) change the supply of pounds in the foreign currency market.