All else equal, a decrease in the rate of inflation ________ aggregate spending and ________ short-run equilibrium output.
A. decreases; decreases
B. increases; increases
C. decreases; increases
D. increases; decreases
Answer: B
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In the wake of Henry Ford's payment of efficiency wages in 1914 ________
A) absenteeism and productivity fell B) absenteeism and productivity rose C) absenteeism rose and productivity fell D) absenteeism fell and productivity rose
Refer to Exhibit 14-1. What sequence of points shows the short- and long-run consequences of a fall in velocity under monetarist assumptions?
a. B-A b. A-E-B c. A-D-B d. B-D-A
The three main provisions of the Taft-Hartley Act were (1) __________; (2) _________; and (3) ____________.
Fill in the blank(s) with the appropriate word(s).
Any change in the economy that reduces desired national saving for a given value of the real interest rate will shift the desired national saving curve to
A. the right and decrease the real interest rate. B. the left and increase the real interest rate. C. the left and decrease the real interest rate. D. the right and increase the real interest rate.