Refer to Figure 19-2. Which of the following would cause the change depicted in the figure above?
A) A new trade agreement with China results in the United States removing all tariffs on clothing imported from China.
B) The Chinese increase their preferences for goods produced in the United States.
C) Lack of investment in infrastructure causes U.S. productivity to fall relative to Chinese productivity.
D) Tainted cat food from China causes U.S. consumers to decrease their preferences for Chinese goods relative to U.S. goods.
B
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Which of the following describes the degree of control that the Fed has over the money supply?
A) The Fed has substantial control over the money supply. B) The Fed has absolute control over the money supply. C) The Fed has no control of the money supply. D) The Fed is not concerned about the level of the money supply, and does not attempt to control it.
If the market wage rate increases, a firm's labor demand curve does not shift but the labor supply curve shifts to the right
Indicate whether the statement is true or false
For the following changes in the economy, indicate whether short-run aggregate supply or long-run aggregate supply will be affected. Indicate the direction of the change
a. an improvement in manufacturing technology b. an increase in the world price of antimony (a chemical that the U.S. imports) c. a bumper potato crop in the southern "potato belt"
Suppose an economy only produces two goods, robots and ice cream. Last month, the economy produced 10 robots and 200 gallons of ice cream. This month, the same economy produced 15 robots and 240 gallons of ice cream. Which of the following statements could explain this change?
a. This month, the economy reduced the unemployment of its resources. b. This month, the economy experienced an improvement in technology. c. This month, the economy experienced an increase in resources d. All of the above are correct.