Part of the good economic performance of the United States in the 1990s can be explained by a rightward-shifting aggregate supply curve
a. True
b. False
Indicate whether the statement is true or false
True
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When the marginal propensity to consume (MPC) increases
A) the average propensity to save remains unchanged. B) the multiplier remains unchanged. C) the multiplier decreases. D) the multiplier increases.
Changes in the size of an industry may cause supply to shift.
Answer the following statement true (T) or false (F)
If the nominal rate of interest on a bond was 7 percent, the inflation rate was 6 percent and an individual was in a 50-percent tax bracket, the after-tax real return on the bond would be equal to
a. 0 percent. b. .5 percent. c. 6 percent. d. 7 percent. e. none of the above.
Suppose that consumers decide to walk to work more frequently and drive cars less. Companies that make walking shoes hire workers, while automobile companies lay off workers. This is an example of
a. frictional unemployment created by sectoral shifts. b. frictional unemployment created by efficiency wages. c. structural unemployment created by efficiency wages. d. structural unemployment created by sectoral shifts.