Recall the Application. If country A has a lower overall income tax rate than country B, and labor can freely and easily move between the two countries, ________ in country B will tend to ________
A) labor supply; decrease B) labor demand; decrease
C) labor demand; increase D) labor supply; increase
A
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An increase in the price of a good could be caused by a. An increase in supply
b. An increase in demand. c. A decrease in supply and an increase in demand. d. Either b. or c.
A positive economic statement simply describes what is
Indicate whether the statement is true or false
The money supply decreased and the AD curve shifted to the left. This is consistent with the
A) Keynesian transmission mechanism when there is neither a liquidity trap nor interest-insensitive investment. B) monetarist transmission mechanism. C) Keynesian transmission mechanism when there is a liquidity trap. D) Keynesian transmission mechanism with interest-insensitive investment. E) a and b
For a given level of inflation, if concerns about future weakness in the economy cause businesses to reduce their spending on new capital, then the ________ shifts ________.
A. aggregate demand curve; left B. short-run aggregate supply line; downward C. aggregate demand curve; right D. short-run aggregate supply line; upward