Answer the following statements true (T) or false (F)
1) An increase in imports (independent of a change in the U.S. price level) will increase both U.S. aggregate supply and U.S. aggregate demand.
2) An increase in business excise taxes will shift the aggregate supply curve leftward.
3) A decrease in per-unit production costs will shift the aggregate supply curve leftward.
4) The aggregate supply curve (short run) becomes steeper as the economy moves rightward
and upward along it.
5) Cost-push inflation is depicted as a rightward shift of the aggregate demand curve along an upsloping aggregate supply curve.
1) F
2) T
3) F
4) T
5) F
You might also like to view...
"Aggregate planned expenditure is the sum of planned consumption expenditure, investment, government expenditures on goods and services, and exports minus imports." Is the previous statement correct or incorrect?
What will be an ideal response?
Based on the above table, the unemployment rate is
A) 10 percent. B) 11.1 percent. C) 7.1 percent. D) 5.4 percent. E) 8.6 percent.
The labor demand curve slopes downward because
a. firms wish to hire fewer workers as the wage rate increases b. households wish to hire fewer workers as the wage rate decreases c. firms wish to hire more workers as the wage rate increases d. firms wish to supply fewer workers as the wage rate increases e. households wish to provide fewer hours of work as the wage rate decreases
What two key assumptions does the quantity theory make concerning variables in the equation of exchange?