Refer to the above figure. The rational expectations hypothesis implies that an anticipated increase in aggregate demand from AD1 to AD2 will
A. will shift the aggregate supply (AS) curve to the right.
B. move the economy from a to b.
C. move the economy from c to b.
D. move the economy from a to c.
Answer: B
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In the early 1980s, the disinflation in the United States
a. was accompanied by rapidly growing deficits. b. was costless in terms of output and employment effects. c. was the result of a well-publicized expansionary monetary policy. d. did not result in a severe recession.
What characterized the 1950–1962 economy (from the Korean War to the last year of John F. Kennedy's presidency)?
(a) Significant inflation (b) Deflation (c) High unemployment (d) Falling prices and wages
Which of the following economic and/or political rights does the labor movement work toward gaining?
(a) Property rights for women (b) The right to vote for women (c) The right to vote for non-owners of property (d) All of the above
Collateralized debt obligations are
A) like mortgage-backed securities except that the slices are equal. B) like mortgage-backed securities except that the slices are unequal. C) an asset for persons who buy them. D) b and c E) a and c