If a country gets grants that improve its port facilities allowed for greater exports, it will impact its economy by
A. decreasing aggregate supply.
B. increasing aggregate supply.
C. increasing aggregate demand.
D. decreasing aggregate demand.
Answer: C
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Which of the following is a limitation of discretionary fiscal policy? i. lawmaking lags ii. estimating potential GDP iii. income gap
A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
Refer to Figure 11-6. In the figure above which letter represents the marginal cost curve?
A) A B) B C) C D) D
Pauline is offered a Job in Minneapolis that pays $80,000 . She is offered a similar job in Louisville that pays $71,200 . Which pair of CPIs would ensure that the two salaries have the same purchasing power?
a. 90 in Minneapolis and 83 in Louisville b. 90 in Minneapolis and 72 in Louisville c. 100 in Minneapolis and 89 in Louisville d. 105 in Minneapolis and 90 in Louisville
When we compare the graph for an increase in aggregate demand with that for the Phillips curve, we can see that the Phillips curve graph is more useful if we want to focus on ______.
a. inflation and unemployment rates
b. aggregate demand and inflation
c. price levels
d. RGDP