Refer to Figure 8.3. Holding other variables constant, a decrease in income taxes accompanied by an increase in the skill level of workers will result in a
A) shift from curve D1 to curve D2 and a shift from curve S1 to curve S2.
B) shift from curve D2 to curve D1 and a shift from curve S1 to curve S2.
C) shift from curve D1 to curve D2 and a shift from curve S2 to curve S1.
D) shift from curve D2 to curve D1 and a shift from curve S2 to curve S1.
A
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Which EU institution has played a significant role is responding to the economic crisis that began in 2007?
What will be an ideal response?
When economists refer to an economy's price level, they indicate: a. the rate of inflation in that economy
b. the prices of goods and services relative to consumers' incomes. c. a composite measure of prices of all goods and services. d. a period of level, or steady, prices in that economy. e. the price of a specific consumer good.
Money is an imperfect store of value when
a. the rate of inflation is high. b. the unemployment rate is high. c. gold prices are falling. d. businesses are failing due to bankruptcy.
A basis for the slope of the short-run Phillips curve is that when unemployment is high there are
a. downward pressures on prices and wages. b. downward pressures on prices and upward pressures on wages. c. upward pressures on prices and downward pressures on wages. d. upward pressures on prices and wages.