Other things being equal, what is the effect of deficit spending on credit markets?
A) The supply of credit will increase while the demand for credit remains the same.
B) The demand for credit increases while the supply of credit remains constant.
C) Both the demand for credit and the supply of credit will decrease.
D) Both the demand for credit and the supply of credit will increase.
B
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Suppose in Italy producers can make 10,000 dresses or 1,000 coats per day, while in Canada producers can make 14,000 similar dresses or 2,000 similar coats per day. Therefore
A) 1 dress costs 7 coats in Italy. B) 1 dress costs 10 coats in Italy. C) 1 coat costs 7 dresses in Canada. D) 1 coat costs 10 dresses in Canada.
With price on the vertical axis and quantity on the horizontal axis, economists would draw an increase in supply as
A) a leftward shift in the supply curve. B) a rightward shift in the supply curve. C) a vertical supply curve. D) any which way we like.
Unions have been protected since 1935 by a federal law, the National Labor Relations Act (NLRA), which contains provisions for
(a) elections by workers to choose their bargaining agents. (b) employers' recognition of union bargaining agents in interstate commerce for union representation and collective bargaining purposes. (c) arbitration of disputes that cannot be resolved through bargaining. (d) all of the above.
A beneficial supply shock would cause
A. a movement down the short-run Phillips curve. B. the short-run Phillips curve to shift upward and to the right. C. a movement up the short-run Phillips curve. D. the short-run Phillips curve to shift downward and to the left.