In the Friedman "Fooling Model" a ________ causes the labor supply curve to shift, and in Figure 17-1 above, if the initial equilibrium is at point C then, the new level of price expectations, POe is ________ than the initial level of Pe
A) change in the money supply; less than
B) change in real wages; less than
C) change in nominal wages; greater than
D) change in price expectations; greater than
D
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Which of the following was not a factor contributing to the debt crisis in Latin America?
(a) The oil shocks. (b) Trade liberalization in many developing countries. (c) An increase in global interest rates. (d) A lack of investment opportunities in the developed countries. (e) All of the above.
According to dynamic tax analysis, continually increasing the tax rate will eventually
A) cause an increase in the tax base. B) have no impact on the tax base. C) cause a decrease in the tax base. D) result in an initial decrease in the tax base followed ultimately by a rise in the tax base.
The supply curve for land in New York City is most likely
A) horizontal or perfectly elastic. B) a downward sloping straight line. C) an upward sloping straight line. D) vertical or perfectly inelastic.
The economy is growing if and only if
A. real GDP is rising. B. GDP is rising. C. the average price level is rising. D. GDP per capita is rising.