Resource prices will fall and short-run aggregate supply will increase if
What will be an ideal response?
current output is less than the economy's full-employment level.
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At the beginning of World War II, a rationing system was established in the United States. Ration stamps or cards were issued for a variety of commodities such as canned milk and gasoline
To receive a gasoline ration card, a person had to certify a need for gas. The ration cards ranged from the most limited A card which only allowed 3 to 4 gallons per week to the most generous X card, which allowed the carrier to buy an unlimited amount of gasoline. A government entity, the War Price and Rationing Board, decided who received and A or an X card. Gasoline cards were allocated through A) command. B) market price. C) majority rule. D) force.
If the marginal social benefit exceeds the marginal social cost of producing the next kilowatt hour of electricity, then it is efficient to produce as many kilowatt hours as possible
Indicate whether the statement is true or false
Historically, one of the most common reasons for countries to impose tariffs was
A) to protect their national security. B) to raise revenue for the government. C) to eliminate unemployment. D) to counter inflation. E) None of the above.
For a major country with extensive capital flows, what is the effect of an increase in interest rates?
a. a currency depreciation and increased net exports b. a currency depreciation and reduced net exports c. a currency appreciation and increased net exports d. a currency appreciation and reduced net exports