Cost-push inflation is characterized by a(n) ________.
A. decrease in aggregate supply and no change in aggregate demand
B. increase in aggregate supply and a decrease in aggregate demand
C. decrease in both aggregate supply and aggregate demand
D. increase in aggregate demand and no change in aggregate supply
Answer: A
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To fully understand how taxes affect economic well-being, we must
a. assume that economic well-being is not affected if all tax revenue is spent on goods and services for the people who are being taxed. b. compare the taxes raised in the United States with those raised in other countries, especially France. c. compare the reduced welfare of buyers and sellers to the amount of revenue the government raises. d. take into account the fact that almost all taxes reduce the welfare of buyers, increase the welfare of sellers, and raise revenue for the government.
For a large firm that produces and sells automobiles, which of the following costs would be a variable cost?
a. the unemployment insurance premium that the firm pays to the state of Missouri that is calculated based on the number of worker-hours that the firm uses b. the cost of the steel that is used in producing automobiles c. the cost of the electricity of running the machines on the factory floor d. All of the above are correct.
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.
Most economists agree that the aggregate demand curve is:
A. vertical. B. horizontal. C. relatively steep. D. relatively flat.