The massive increase in government spending during World War II moved the economy in the span of a few short years from mass unemployment and price stability to "overfull" employment and severe demand-pull inflation. This situation can be best characterized by:
A. an increase in aggregate supply.
B. a decrease in aggregate demand.
C. a decrease in aggregate supply.
D. an increase in aggregate demand.
Answer: D
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Which of the following statements is correct?
I. A drop in the foreign exchange value of the dollar would decrease aggregate demand II. A decrease in the amount of money in circulation would increase aggregate demand A) I only B) II only C) Both I and II D) Neither I nor II
Which of the following is NOT correct regarding the status of U.S. labor unions?
A) Today fewer than one in eight workers is a union member. B) A key reason for the decline in union membership is the relative decline in manufacturing jobs as a share of total employment. C) Greater domestic and global competition has had a part in bringing about a decline in unions. D) Global trade has increased the number of union members in the United States.
If you are willing to purchase a house for $500,00 . and you purchase the house for $500,00 . , this transaction will generate:
a. There is no surplus created b. $0 worth of seller surplus and unknown amount of buyer surplus c. $0 worth of buyer surplus and unknown amount of seller surplus d. Not information provided
Regarding wealth and environmental quality,
a. richer people are more willing to make sacrifices to gain greater environmental quality. b. poor nations are less resilient when faced with the threats caused by environmental degradation. c. richer people are more able to make sacrifices to gain greater environmental quality. d. all of the above