The economy's long-run AS curve assumes that wages and other resource prices ________.
A. are flexible upward but inflexible downward
B. eventually rise and fall to match upward or downward changes in the price level
C. rise and fall more rapidly than the price level
D. are relatively inflexible both upward and downward
Answer: B
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A) inflation. B) the interest rate. C) employment. D) productivity.
Ceteris paribus, if North Korea increases the size of its military, then:
A.) Its production possibilities curve will shift outward. B.) Its production possibilities curve will shift inward. C.) Its production of consumer goods will increase. D.) Its production of consumer goods will decrease.
Supply-side economists emphasize the importance of saving to finance investment.
Answer the following statement true (T) or false (F)
It is most likely that the federal government will never actually pay off the national debt.
Answer the following statement true (T) or false (F)