By itself, an increase in the price of oil shifts the
A) aggregate supply curve rightward and does not shift the aggregate demand curve.
B) aggregate demand curve rightward and does not shift the aggregate supply curve.
C) aggregate demand curve rightward and shifts the potential GDP line rightward.
D) aggregate supply curve leftward and does not shift the aggregate demand curve.
E) aggregate demand curve leftward and does not shift the aggregate supply curve.
D
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Assuming a nominal interest rate of 6 percent, an unemployment rate of 4 percent, and an inflation rate of 2 percent, the real interest rate is approximately
A) 2 percent. B) 4 percent. C) 6 percent. D) 8 percent.
Price controls often generate
A) more efficient markets. B) black markets. C) rapid adjustment to market-clearing prices. D) greater price flexibility.
Which of the following is not a characteristic that makes medical care different from other commodities?
a. Demand for medical care is irregular. b. Sellers have more information than buyers. c. Third-party payers abound. d. For-profit providers play a major role in delivering medical care. e. The transaction itself if filled with uncertainty.
Over $140 billion was spent on transportation in 2007, with the lion's share being handled by state and local governments. Roughly 78 percent of transportation spending was allocated to
a. enforcement of fuel efficient standards b. the highway system c. bridges d. city streets e. traffic lights