A prolonged recession in Europe should decrease the
a. supply of U.S. dollars.
b. demand for U.S. dollars.
c. supply of U.S. goods and services.
d. demand by Americans for euros.
b
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A change in the full-employment quantity of labor ________ the short-run aggregate supply curve and ________ the long-run aggregate supply curve
A) shifts; shifts B) shifts; does not shift C) does not shift; shifts D) does not shift; does not shift
Suppose your university decides to increase parking fees in order to deal with the shortage of parking spaces. Nevertheless, the president of your student body convinces the university to pay back the amount spent on higher parking fees to students in the form of a rebate at the end of the school year. Therefore, the increase in parking fees will
A. not solve the parking shortage. B. will have no effect since it will be offset entirely by the rebate. C. make the parking shortage even worse. D. reduce demand for parking and hence alleviate the parking shortage.
A rich nation will trade with a poor nation because the:
A. rich nation has the absolute advantage in producing all products. B. poor nation has the absolute advantage in producing all products. C. poor nation has the comparative advantage in producing a product. D. rich nation has the comparative advantage in producing all products.
Vertical differentiation makes products better for some consumers and worse for others.
Answer the following statement true (T) or false (F)