Major increases in oil prices in the mid-1970s and in the late 1970s created:
A. beneficial aggregate demand shocks.
B. adverse aggregate supply shocks.
C. an increase in long-run aggregate supply.
D. a reduction in the unemployment rate.
Answer: B
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Since housing generally represents a large part of most household budget, the elasticity of demand for housing is likely to be large.
Answer the following statement true (T) or false (F)
Kelly and David are both capable of repairing cars and cooking meals. Which of the following scenarios is not possible?
a. Kelly has a comparative advantage in repairing cars and David has a comparative advantage in cooking meals. b. Kelly has an absolute advantage in repairing cars and David has an absolute advantage in cooking meals. c. Kelly has a comparative advantage in repairing cars and in cooking meals. d. David has an absolute advantage in repairing cars and in cooking meals.
Employer withholding of the federal income tax began during World War I
a. True b. False
The aggregate supply curve slopes upward when the real wage falls initially as the price level rises
a. True b. False Indicate whether the statement is true or false