Which of the following will shift the aggregate demand curve to the right, ceteris paribus?
A) an increase in interest rates
B) a decrease in disposable income
C) a decrease in expected profits for firms
D) an increase in net exports
Answer: D
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Define the unemployment rate and labor-force participation rate. Discuss the differences between these two rates
What will be an ideal response?
Which of the following are true?
a. Economists use the criterion of economic efficiency to judge the merit of alternative outcomes. b. Undertaking an economic action will be efficient if it produces more benefits than costs for the individuals of the economy. c. Undertaking an economic action will be inefficient if it produces more costs than benefits to the individuals. d. All of the above are true.
Improvements in output per worker
A. Depend only on increases in the quality of capital equipment. B. Depend only on increases in the quantity of capital equipment. C. Depend in large part on increases in the quality of capital equipment and the quantity of capital equipment per worker. D. Do not depend on increases in the quantity of capital equipment or the quality of capital equipment.
If the annual growth in a nation's productivity is 2.8 percent rather than 1.5 percent, then the nation's standard of living will double in about:
A. 20 years instead of 40 years B. 25 years instead of 47 years C. 46 years instead of 70 years D. 55 years instead of 115 years