A reduction in the aggregate price level, P, will most likely have which of the following effects?
A) a rightward shift in the IS curve
B) a leftward shift in the IS curve
C) an upward shift in the LM curve
D) a downward shift in the LM curve
D
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Typical structure characteristics of interest to Industrial Organization researchers include
a. Barriers to entry b. Product differentiation among firms c. The number and size distribution of firms d. All of the above
Economists of the rational expectations school believe that expansionary monetary policy is fully effective only if: a. the policy is anticipated by workers and firms
b. it causes the aggregate supply curve to shift to the left. c. the economy is operating at or above its potential output level. d. policy makers follow through on their previously announced plans. e. the policy is totally unexpected.
An increase in the money wage rate will cause the aggregate supply curve to shift
a. outward, which means the quantity supplied at any price level decreases. b. outward, which means the quantity supplied at any price level increases. c. inward, which means the quantity supplied at any price level increases. d. inward, which means the quantity supplied at any price level decreases.
If our deficit falls steadily over the next five years our national debt will
A. increase at an increasing rate. B. increase at a decreasing rate. C. decrease at an increasing rate. D. decrease at a decreasing rate.