If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected.
B. only the long-run aggregate supply curve would shift left.
C. only the short-run aggregate supply curve would shift left.
D. the long-run and short-run aggregate supply curves would both shift left.
Answer: D
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A tax ________ is more likely to cause a permanent increase in investment and worker productivity in an economy with a ________
A) increase; small government budget deficit B) decrease; large government budget deficit C) decrease; high inflation rate D) increase; large government budget deficit
Foreign direct investment is:
A. investment that occurs when a firm runs part of its operation abroad or invests in another company abroad. B. investment that occurs when a firm runs its operation domestically, and sells its product abroad. C. when foreign companies buy physical capital from the United States. D. when foreign companies buy and operate physical capital within the United States.
Suppose that the price of a pizza is $10 and that the price of a blouse is $30 . At her present level of consumption, Magda's ratio of marginal utility of pizza to marginal utility of blouses is 1/2 . To maximize total utility, she should
a. buy more pizzas and fewer blouses b. buy fewer pizzas and more blouses c. continue to buy the same quantities of pizza and blouses d. spend more time consuming pizza e. spend more time buying blouses
Which of the following statements is incorrect?
a. The unemployment rate overstates the labor market's true level of economic hardship because many families have more than one income earner. b. It is mathematically and economically impossible for the unemployment rate and employment rate to rise at the same time. c. By reporting that they are "actively seeking work" when they are not, individuals cause the unemployment rate to rise above the true level of hardship. d. Because part-time workers are counted as fully employed the unemployment rate understates the true level of economic hardship.