If the national incomes of our trading partners increase, then our aggregate demand ________.
A. decreases because consumption decreases
B. increases because net exports increase
C. decreases because net exports decrease
D. increases because consumption increases
Answer: B
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Which of the following are required for economic growth?
i. more goods and services produced per hour of work ii. an increase in the average hours of labor per person iii. an increase in prices A) i only B) ii and iii C) ii only D) i and iii E) i and ii
In modern free enterprise economies, which of the following is not an economic role of government?
A. stabilization of national income, employment, and the price level B. altering the allocation of resources to provide for public demands efficiently C. providing a reasonably certain legal, social, and business environment for stable economic growth D. planning the production and distribution of most economic goods
Consider a nation in which most workers are unionized. If all the nation's unions band together and succeed in boosting wages established by long-term labor contracts, then
A. there is a leftward shift in just LRAS. B. there is a rightward shift in just SRAS. C. there is a rightward movement along the SRAS curve. D. there is a leftward shift in both LRAS and SRAS.
Refer to the information provided in Figure 23.2 below to answer the question(s) that follow.
Figure 23.2Refer to Figure 23.2. Jerry's saving equals zero at income level
A. Y2. B. Y2 - Y1. C. Y1. D. zero.