An adverse supply shock shifts the production function curve ________ and the labor demand curve ________
A) upward, upward
B) upward, downward
C) downward, upward
D) downward, downward
D
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What is the most an individual would be willing to pay on January 1st for a bond that promises to pay $500 at the end of the year for the next three years if the market rate of interest is 5 percent? Explain
What will be an ideal response?
The price of one currency in terms off another currency is called
A) foreign reserves. B) the foreign exchange rate. C) the foreign trade deficit. D) the balance of payments.
One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired. B. prices tend to adjust more quickly downward than upward. C. wages are sticky downward. D. input prices increase with output prices.
A $0.2 trillion increase in government purchases increases the quantity demanded by $1.0 trillion, the price level remaining constant. This additional spending reflects the _____ effect.
Fill in the blank(s) with the appropriate word(s).