If our government cuts taxes, then we will see
a. an upward movement along the AD curve
b. a downward movement along the AD curve
c. the AD curve shift to the left
d. the AD curve shift to the right
e. the AS curve shift to the right
D
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If an import quota is imposed on imports of shrimp into the United States, U.S. producers ________ and the U.S. economy will ________
A) gain; be unaffected B) gain; lose C) lose; gain D) lose; lose E) gain; gain
In the early stages of the 1980s banking crisis, financial institutions were especially harmed by
A) declining interest rates from late 1979 until 1981. B) the severe recession in 1981-82. C) the disinflation from mid 1980 to early 1983. D) the increase in energy prices in the early 80s.
In the late 1960s, economist Edmund Phelps published a paper that
a. argued that there was no long-run tradeoff between inflation and unemployment. b. disproved Friedman's claim that monetary policy was effective in controlling inflation. c. showed the optimal point on the Phillips curve was at an unemployment rate of 5 percent and an inflation rate of 2 percent. d. argued that the Phillips curve was stable and that it would not shift.
Assuming a long-run aggregate supply curve, a decrease in government spending results in ________ in output and ________ in price level.
A. no change; an increase B. no change; a decrease C. a decrease; a decrease D. an increase; no change