If wages are sticky, then a greater than expected increase in the price level
a. raises the real costs of production, so the short-run aggregate supply curve shifts left.
b. raises the real costs of production, so the aggregate quantity of goods and services declines.
c. reduces the real costs of production, so the short-run aggregate supply curve shifts right.
d. reduces the real costs of production, so the aggregate quantity of goods and services rises.
d
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Which of the following is NOT an expected benefit of reducing nontariff barriers to trade?
A) Fewer firms to compete with B) Lower prices for many goods C) Increase in the volume of exports and imports D) Increase in production levels E) Improved overall economic welfare
A large open economy reduces its investment demand. This causes the world real interest rate to ________ and the country's current account balance to ________
A) rise; fall B) rise; rise C) fall; rise D) fall; fall
All of the following took place during the economic crisis that began in 2007 EXCEPT:
A) the financial system was disrupted B) large portions of the U.S. economy were cut off from the funds they needed to thrive C) there was a devastating decline in the production of goods and services throughout the economy D) unlike households, most businesses still had easy access to funds
Which of the following best distinguishes a "command economy" from a "market economy?" a. A command economy is more efficient than a market economy because decision making is centralized
b. There is scarcity in command economies, but not in market economies. c. Command economies are less prone to inflation than are market economies. d. Production and distribution decisions are made by central planners in a command economy, but not in a market economy.