Negative supply shocks cause shifts in:
A. the short-run aggregate supply curve and, possibly, the long-run aggregate supply curve.
B. the monetary policy reaction curve but only if policymakers do not change their inflation target.
C. only the short-run aggregate supply curve.
D. the dynamic aggregate demand curve.
Answer: A
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Refer to the figure above. The consumer surplus before the tax is imposed is given by the area ________
A) BCJ B) BAH C) CAE D) JBHF
Which of the following sequences accurately describes the evolution of the payments system?
A) barter, coins made of precious metals, paper currency, checks, electronic funds transfers B) barter, coins made of precious metals, checks, paper currency, electronic funds transfers C) barter, checks, paper currency, coins made of precious metals, electronic funds transfers D) barter, checks, paper currency, electronic funds transfers
A decrease in the price of domestically produced nuclear reactors will be reflected in
a. both the GDP deflator and the consumer price index. b. neither the GDP deflator nor the consumer price index. c. the GDP deflator but not in the consumer price index. d. the consumer price index but not in the GDP deflator.
Inflation tends to:
A. Increase productivity B. Decrease input prices C. Increase the strength of the multiplier D. Reduce the strength of the multiplier