Demand-pull inflation occurs
A. when the aggregate demand curve shifts to the right, while aggregate supply remains stable.
B. when the aggregate demand curve shifts to the left, while aggregate supply remains stable.
C. when the aggregate supply curve shifts to the right, while aggregate demand remains stable.
D. when the aggregate supply curve shifts to the left, while aggregate demand remains stable.
Answer: A
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If the currency drain increases, how can the Fed adjust the monetary base to offset the effect on the quantity of money?
What will be an ideal response?
By approximately how much would the federal government have to raise each worker's annual taxes to eliminate the current federal budget deficit?
A) between $50 and $100 per year B) about $50,000 per year C) between $50,000 and $100,000 per year D) about $4,000 per year
A slump in one industry could increase the relative attractiveness of another industry:
A. increasing the quantity of labor supplied in the latter. B. decreasing the quantity of labor supplied in the latter. C. increasing the quantity of labor demanded in the latter. D. decreasing the quantity of labor demanded in the latter.
If consumption = $5,000; investment = $800, government purchases = $700, exports = $30, imports = $60, and transfer payments = $340, then _____
a. GDP = $7,400 b. GDP = $7,740 c. GDP = $3,140 d. GDP = $6,470 e. GDP = $6,840