Suppose the economy is initially operating at point A in the above figure. Which of the following statements is TRUE?
A. An unexpected reduction in aggregate demand will cause the economy to move from point A to point C in the short run.
B. An unexpected reduction in aggregate demand will cause the economy to move from point A to point B in the long run.
C. An unexpected reduction in aggregate demand will cause the economy to move from point A to point B in the short run.
D. none of these
Answer: C
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Changes in what sector best explain changes in union rates throughout American history?
a. Agricultural. b. Government. c. Manufacturing. d. Service.
If the poorest 80 percent of the population receives 75 percent of the income, then the
a. richest quintile receives 20 percent of the income b. Lorenz curve lies on the diagonal c. richest quintile receives 25 percent of the income d. poorest quintile receives 25 percent of income e. poorest quintile receives 75 percent of the income
Unemployment that occurs when there are not enough jobs for the number of people in the labor force is referred to as:
A. Frictional unemployment. B. Structural unemployment. C. Cyclical unemployment. D. Seasonal unemployment.
The exchange rate is the
A. price of one currency in terms of another. B. price of imports in terms of exports. C. nominal price of a currency in terms of gold. D. reciprocal of the terms of trade.