Which of the following causes a leftward shift in the short-run aggregate supply curve?
a. An increase of goods prices while nominal incomes are unchanged
b. An increase in nominal incomes (wages and salaries).
c. An increase of full-employment real GDP.
d. An increase of personal consumption expenditures while the price level is unchanged.
e. An increase of personal consumption expenditures while full-employment real GDP is unchanged.
b
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Which of the following historical events is often cited as an example of the successful implementation of Keynesian theory?
a. the Kennedy-Johnson tax cut of 1964 b. the price controls of the Nixon administration c. the anti-inflation policies of the Carter administration d. the series of tax cuts implemented by the Reagan administration during the 1980s
In the market for loanable funds, the supply curve:
A. represents savers. B. is downward sloping. C. reflects that more people will choose to save the lower is the interest rate. D. is made up of people who want to borrow funds.
What is the effect of import restrictions on prices?
(A) They cause prices to drop. (B) They often cause prices to rise steeply and then drop. (C) They usually do not have any lasting effect on price. (D) They cause prices to rise.
One of the reasons we know that international labor mobility has been higher at other times is because
A) the percent of our population that was foreign born was higher. B) the percent of our population that was foreign born was lower. C) wages were lower. D) labor was important in agriculture. E) the population was younger.