An increase in the price level in the economies of U.S. trading partners will cause the aggregate expenditures function in the United States to
a. shift up.
b. shift down.
c. get flatter.
d. get steeper.
a
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Workers expect inflation to rise from 3% to 5% next year. As a result, this should
A) move the economy down along a stationary short-run aggregate supply curve. B) move the economy up along a stationary short-run aggregate supply curve. C) shift the short-run aggregate supply curve to the left. D) shift the short-run aggregate supply curve to the right.
In order to meet the dual mandate, the Fed must:
A. maintain price stability. B. maintain full employment. C. keep unemployment levels near the NAIRU. D. All of these statements are true.
Suppose Paul just saw a car accident while driving home from work. According to the availability heuristic, this is likely to make Paul think that:
A. he is extremely lucky. B. car accidents are more common than they really are. C. car accidents are rare. D. people only get into car accidents if they are bad drivers.
Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Mike's opportunity cost of producing one pound of cheese is ________ car(s).
A. 1/500 B. 1/10 C. 1/250 D. 500