Other things equal, an adverse supply shock would
a. Shift SRAS left
b. Shift LRAS left
c. Shift AD left
d. Do all of the above
a
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Holding everything else constant, if the nominal interest rate decreases, the interest paid on the debt will ________ the debt-to-GDP ratio, and nominal GDP growth will ________ the debt-to-GDP ratio
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
If MRP > MLC, it means that a firm should
A) use less labor. B) use more labor. C) increase its fixed capacity. D) decrease its fixed capacity.
People who are currently not working but are actively looking for work are officially classified as
A) employed and out of the labor force. B) unemployed and out of the labor force. C) employed and in the labor force. D) unemployed and in the labor force.
The demand schedule shows that the price of a good and quantity demanded are directly related to each other
a. True b. False Indicate whether the statement is true or false