An increase in productivity will ________.
A. increase aggregate supply and aggregate demand
B. increase aggregate supply
C. decrease aggregate supply and aggregate demand
D. increase aggregate demand
Answer: B
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Distinguish between a voluntary export restraint and a quota
What will be an ideal response?
Which country was least supportive of expansionary policy by the European Central Bank during the Financial Crisis of 2007-2009?
A) Spain B) Portugal C) Greece D) Germany
If the Fed wanted to shift to a restrictive monetary policy and reduce the money supply, it could
a. decrease the reserve requirements imposed on commercial banks. b. purchase U.S. government securities and other financial assets in the open market. c. decrease the interest rate on loans extended to banks and other financial institutions. d. increase the interest rate paid on excess reserves encouraging banks to hold excess reserves rather than extend more loans.
The News Wire article in the text titled "Economy Sharpest decline in 26 years" "Economy Contracts in 3rd Quarter" discusses the reduction in output for the U.S. economy. Which type of unemployment is most likely in this situation?
A. Structural B. Frictional C. Cyclical D. Seasonal