Suppose a country offers a new investment tax credit. Which curve(s) in the aggregate demand and aggregate supply model would be affected, and which way would it (they) shift?
The aggregate-demand curve would shift to the right.
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It is expected that the price of a bushel of wheat will increase in one month. This belief will result in
A) a decrease in the future supply of wheat. B) an increase in the current supply of wheat. C) a decrease in the current supply of wheat. D) no change in the current or future supply of wheat. E) an increase in the current quantity supplied of wheat.
In the 1979-82 period, the Fed pursued a monetary policy which targeted the growth rate of the money supply. Given the effects of financial deregulation on money demand you would expect, ceteris paribus,
A) stable interest rates. B) volatile interest rates. C) a constant interest rate. D) slow growth in interest rates.
Some people make purchases without complete information because:
A. they are irrational. B. the opportunity cost of getting more information outweighs the benefit of having more information. C. the benefit of having more information outweighs the opportunity cost of acquiring it. D. No one makes purchases without complete information.
Which of the following is NOT a reason why the United States is able to produce such high levels of GDP?
A.) Abundant factors of production. B.) Labor-intensive production process. C.) High levels of investment in human capital. D.) High quality of capital.