Refer to Figure 3-2. A decrease in productivity would be represented by a movement from
A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.
D
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Relative to the short-run demand for gasoline, the long-run demand for gasoline is
A) probably more elastic since people need time to change automobiles and driving habits. B) probably less elastic since people need time to change automobiles and driving habits. C) probably more elastic because people can hoard this good. D) probably less elastic because people cannot store this good.
Which of the following is true of Carter administration?
a. Dramatic expansion of Social Security and Medicare programs b. Large income tax cuts, especially for the wealthy c. Deregulation of airlines, trucking, railroads and the financial services industry d. Government control of gasoline and food prices
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.
Which of the following is NOT normative economic statement?
A. Taxes on cigarettes should be increased to reduce smoking. B. The inflation rate should fall to increase individuals' well being. C. Increases in the minimum wage cause increases in unemployment. D. The minimum wage should be eliminated so unemployment can be reduced.