Cost-push inflation can be shown on an aggregate supply aggregate demand diagram as
A. a leftward shift in the aggregate supply curve with no change in aggregate demand.
B. a rightward shift in the aggregate demand curve with no change in aggregate supply.
C. a rightward shift of the aggregate supply curve with no change in aggregate demand.
D. a leftward shift in the aggregate demand curve with no change in aggregate supply.
Answer: A
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The Coase theorem asserts that under certain conditions, the property rights to an activity will be acquired by the party that values it most
Indicate whether the statement is true or false
Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a theater ticket. If the price of one ticket is $25
A) no one will buy a ticket. B) Anya's consumer surplus is $1. C) everyone will buy a ticket. D) consumer surplus will be maximized.
The second stage in the regulatory process is
A) a crisis. B) regulation. C) response by the financial system. D) regulatory response.
Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. Suppose Country A specializes in bananas, and Country B specializes in tomatoes. The limits to the terms of trade that Country B would find acceptable are Country B will accept no:
A. more than 3 bananas for each tomato. B. less than 3 bananas for each tomato. C. more than 1 tomato for every 3 bananas. D. less than 1 tomato for every 3 bananas.