An increase in supply is represented by a

a. movement downward and to the left along a supply curve.
b. movement upward and to the right along a supply curve.
c. rightward shift of a supply curve.
d. leftward shift of a supply curve.


c

Economics

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Which of the following taxes has the greatest effect on the natural rate of unemployment?

a) income taxes b) retail sales taxes c) Social Security taxes d) real estate taxes e) inheritance taxes

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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.

A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary

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Which of the following generalizations is false? Other things equal:

A. interest rates are higher if lenders are imperfectly, rather than purely, competitive. B. the interest rate is less on small loans than on larger loans. C. long-term loans normally command higher interest rates than short-term loans. D. the greater the risk on a loan, the greater the interest rate.

Economics

If the MPC is 0.75 and the MPM is 0.25, the open economy multiplier is 2.

Answer the following statement true (T) or false (F)

Economics