When the aggregate demand curve shifts to the left, real GDP falls unless the aggregate supply curve is
A) horizontal.
B) upward-sloping.
C) vertical.
D) upward-sloping or vertical.
C
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What are the factors that change investment demand and shift the demand for loanable funds curve?
What will be an ideal response?
Based on Table 4.1, according to the Stolper-Samuelson Theorem, the income distribution effects of free trade in the United States are likely to favor
A) capital. B) labor. C) either capital or labor, depending on U.S. productivity. D) neither capital nor labor. E) Not enough information to tell.
Refer to the following graph. The price of capital (r) is $20.
What is the price of labor (w)?
A. $30 B. $35 C. $25 D. $20 E. none of the above
If the Fed sells government securities on the open market, this will cause _____ in the quantity of money available and _____ in the interest rate.
A. an increase; an increase B. a decrease; an increase C. an increase; a decrease D. a decrease; a decrease