In a short-run macroeconomic equilibrium, potential GDP exceeds real GDP. If aggregate demand does not change, then the
A) short-run aggregate supply curve will shift rightward as the money wage rate falls.
B) short-run aggregate supply curve will shift leftward as the money wage rate rises.
C) long-run aggregate supply curve will shift leftward as the money wage rate rises.
D) long-run aggregate supply curve will shift leftward as the money wage rate falls.
A
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One of the reasons why firms pollute the air is that
A. use of the air is not easily excludable. B. use of the air is costless to society. C. use of the air is excludable. D. moral hazard creates incentives to pollute the air.
Taylor has the following assets and liabilities:Two cars$15,000House$400,000Mortgage$300,000Cash$1,000Car loans$5,000Checking account balance$3,000Credit card balance$3,000 What is the value of Taylor's liabilities?
A. $303,000 B. $308,000 C. $311,000 D. $300,000
Using productive resources to make capital goods requires that we
A. forgo some level of current consumption. B. get government approval of our plan to make capital goods. C. prove that the existence of the capital goods will not cause any environmental damage. D. get everyone to agree on the best use of those resources.
Which of the following would be most likely to induce Congress and the president to conduct expansionary fiscal policy? A significant
A) decrease in investment spending. B) decrease in oil prices. C) increase in consumption spending. D) increase in net exports.