If there are floods or droughts or a decrease in the availability of raw materials
a. aggregate supply shifts right.
b. output falls in the short run.
c. prices fall in the short run.
d. None of the above is correct.
b
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Which of the following statements is true?
A) Proximate causes of prosperity are shaped by fundamental causes of prosperity. B) Proximate causes of prosperity are effective only in the short run. C) Fundamental causes of prosperity are effective only in the short run. D) Fundamental causes of prosperity are shaped by proximate causes of prosperity.
A 2009 article in The Economist noted that
a. recent research has allowed economists to estimate the values of fiscal multipliers with a great deal of precision. b. research on multipliers indicates that multipliers for permanent tax cuts tend to be smaller than multipliers for temporary tax cuts. c. most of the evidence on multipliers for government spending is based on changes in military expenditures. d. All of the above are correct.
Exhibit 10-12 Income distribution for three countries QuintileCountry I (%) Country II (%) Country III (%) Poorest 6 8 4 Second12 12 8 Third15 15 10 Fourth27 30 30 Richest40 35 48 Exhibit 10-12 shows the percentage of income received by each population quintile. In Country II we can conclude that the:
A. least-wealthy 40 percent of the population received 20 percent of the economy's income. B. least-wealthy 20 percent of the population received 25 percent of the economy's income. C. richest 20 percent of the population received 20 percent of the economy's income. D. richest 40 percent of the population received 35 percent of the economy's income.
Discuss how the age composition of the labor force and other demographic and social factors can cause the natural rate of unemployment to vary over time. For 2012, economists at the Congressional Budget Office have estimated a natural rate of 5.5%.
What will be an ideal response?