A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only.
B. aggregate demand curve only.
C. aggregate demand curve, and the short-run aggregate supply curve would shift in response.
D. short-run aggregate supply curve and the long-run aggregate supply curve.
Answer: A
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Consider the above figure. The equation for the consumption function is
A) C = 40 + 50Yd. B) C = 40 + 0.33Yd. C) C = 40 + 60Yd. D) C = 40 + 0.1Yd.
As several eastern states began to legalize casino gambling, the revenues of casinos in Atlantic City began to ________ and their profits ________
A) fall; decreased B) rise; decreased C) fall; increased D) rise; increased
Which of the following is not a type of trade restriction?
a. low-interest loans to foreign buyers b. export subsidies to domestic producers c. restrictive health and safety standards d. domestic content requirements e. economies of scale
The rational expectations hypothesis assumes that individuals will
a. never make forecasting errors. b. be as likely to overestimate as to underestimate the future rate of inflation. c. continually make systematic forecasting errors. d. ignore past forecasting errors when formulating predictions.