Use the following diagram to answer the next question.
Which of the following would cause a shift from G1 to G2?
A. A decrease in government spending
B. An increase in government spending
C. An increase in taxes
D. A decrease in taxes
Answer: B
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A demand-pull inflation consists of ________ shifts in the AD curve and ________ shifts in the AS curve
A) right; no B) leftward; leftward C) leftward; rightward D) rightward; leftward E) rightward; rightward
The interest rate effect explains that higher prices
a. make it more expensive to borrow, leading to higher interest rates and less investment b. make people worse off by reducing the value of their wealth, leading them to save more and spend less c. decrease borrowing, leading to higher interest rates and less investment d. decrease borrowing, leading to lower interest rates and more investment e. increase borrowing, leading to higher interest rates and less investment
According to Okun's law, when the output gap is negative, cyclical unemployment:
A. is negative. B. equals structural unemployment. C. is positive. D. equals frictional unemployment.
If the most someone is willing to pay for ticket to see their favorite team is $100 and the market price of the ticket is $35, then this buyer will get consumer surplus of
A. 1 ticket. B. $35. C. $65. D. $100.