Which of the following would cause a decrease in supply for good W?
A. An increase in preferences for good W among consumers
B. A technological advance in producing good W
C. A price increase in a key input used to produce good W
D. An increase in the income of consumers most likely to purchase good W
C. A price increase in a key input used to produce good W
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The rate of inflation increases when
A) the unemployment rate equals the NAIRU. B) the unemployment rate exceeds the NAIRU. C) the unemployment rate is less than the NAIRU. D) the unemployment rate increases faster than the NAIRU increases.
Describe how changes in expected inflation impact an economy in the wake of a temporary negative supply shock
What will be an ideal response?
The marginal social costs and abatement costs of a certain type of air pollution for a factory are given as:
MSC = -1121 + 22.5Q MCA = 879 - 17.5Q, where Q = units of pollution per day, and MSC and MCA are measured in dollars. The factory is located in a small town that is currently setting community standards. You have been hired to perform the analysis requested below. a. If the community wishes to set a pollution standard for the factory, what daily level of pollution should be allowed? b. As an alternative, some members of the town council favor an emissions tax for the factory. If a tax is implemented, at what level should the tax be set?
The sequence of events following a contractionary monetary policy would be higher interest rates followed by dollar
A. depreciation, higher exports, and lower imports. B. depreciation, lower exports, and higher imports. C. appreciation, lower exports, and higher imports. D. appreciation, higher exports, and lower imports.