The nation, as a whole, is hurt by inflation if it:
a. Is expected.
b. Reduces productivity.
c. Changes consumers' preferences for durable versus non-durable goods.
d. Rises at a rate that is greater than real GDP.
e. All the above are true.
.B
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In an effort to protect endangered species from the effects of logging in America's national forests, the federal government passes a law prohibiting logging in most of the state of Washington
Which of the figures above best illustrates the effect of this new law? A) Figure A B) Figure B C) Figure C D) Figure D E) None of the above because a prohibition cannot be illustrated using demand and supply figures.
Roxanne's hourly wage increases from $9 to $13 . Which of the following describes a consequence of the increase in Roxanne's wage?
a. The opportunity cost of Roxanne's leisure time has increased. b. Roxanne may choose to work fewer hours due to the increase in her wage. c. If Roxanne's labor supply curve is upward sloping, she will choose to work fewer hours. d. Both a and b are correct.
Long-run economic growth can be achieved with
A. Neutral monetary policy. B. Contractionary fiscal policy. C. A rightward shift in the long-run aggregate supply curve. D. A rightward shift in the aggregate demand curve.
Keynes argued that because of sticky prices and wages
A. the long-run aggregate supply curve slopes downward. B. the short-run aggregate supply curve is probably vertical. C. the short-run aggregate supply curve could be horizontal. D. the aggregate demand curve is vertical.