An attempt to lower unemployment with demand-side stimulus policies will cause an increase in the price level, which is illustrated by
A. A rightward shift of the aggregate demand curve.
B. A rightward shift of the aggregate supply curve.
C. A leftward shift of the aggregate demand curve.
D. A leftward shift of the Phillips curve.
Answer: A
You might also like to view...
If labor productivity increases
A) labor costs rise by equal increments. B) the demand for labor increases. C) some workers will be laid off. D) jobs will relocate.
Suppose we were analyzing the Turkish lira per euro foreign exchange market. If The Euro-Area's tax level falls relative to Turkey and nothing else changes, then the:
a. The supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market falls, causing a depreciation of the euro. b. The supply of euros in the foreign exchange market falls, and the demand for euros in the foreign exchange market falls, causing an uncertain change in the value of the euro. c. The supply of euros in the foreign exchange market falls, and the demand for euros in the foreign exchange market rises, causing an appreciation of the euro. d. Neither supply nor demand in the foreign exchange market change because relative international prices influence trade flows and not the exchange rate. e. The supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market rises, causing an uncertain change in the value of the euro.
If people (who used to neither borrow nor save) are now borrowing to put their kids through college, then this will cause the equilibrium interest rate
A. to fall. B. to fluctuate wildly. C. to rise. D. to remain constant.
In the quintile distribution of income, the term "quintile" represents:
A. 5 percent of the income receivers. B. 10 percent of the income receivers. C. 20 percent of the income receivers. D. 25 percent of the income receivers.