Which of the following would most likely cause a rightward shift in an economy's aggregate supply curve?
A) An increase in interest rates
B) A tax increase of 50 cents per gallon for gasoline
C) An across-the-board reduction of wages in the manufacturing sector
D) The passage of legislation mandating a reduction in automobile pollution
E) The shutdown of plants and movement of production of goods abroad
Answer: C) An across-the-board reduction of wages in the manufacturing sector
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Under the Bretton Woods system of fixed exchange rates, the price of the U.S. dollar was fixed in terms of gold and the prices of all other currencies were fixed in terms of dollars.
Answer the following statement true (T) or false (F)
Government budgets are
A. always adhered to. B. not necessary. C. guides for project analysis. D. easy to create.
For the short-run cost function AVC = a + bQ + cQ2,
A. the corresponding SMC function is SMC = aQ + 2bQ3 + 3cQ3. B. the AVC curve is ?-shaped when a > 0, b < 0, and c > 0. C. the AVC curve is ?-shaped when a < 0, b > 0, and c < 0. D. both a and c E. all of the above
Explain why the bid-ask spread on most municipal bonds would be greater than the spread on U.S. Treasury bonds.
What will be an ideal response?