Why does the short-run aggregate supply curve shift to the right in the long run, following a decrease in aggregate demand?
A) Workers and firms adjust their expectations of wages and prices upward and they push for higher wages and prices.
B) Workers and firms adjust their expectations of wages and prices upward and they accept lower wages and prices.
C) Workers and firms adjust their expectations of wages and prices downward and they accept lower wages and prices.
D) Workers and firms adjust their expectations of wages and prices downward and they push for higher wages and prices.
C
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The goal of international economic policy cooperation is to allow for greater flexibility in exchange rates
Indicate whether the statement is true or false
A return to the gold standard, that is, using gold for money will ________ the ________ for gold, ________ its price, everything else held constant
A) increase; demand; increasing B) decrease; demand; decreasing C) increase; supply; increasing D) decrease; supply; increasing
If deficit spending does not contribute to public investment and crowds out private investment, then
A. Future productive capacity will be enhanced. B. The current generation will bear the total burden of the debt. C. The opportunity cost of the debt will be minimized. D. The rate of economic growth will decline, ceteris paribus.
Three hurricanes, combined with the already high real-estate prices, have made people reconsider whether to retire to Florida. The cost of homeownership has increased due to stricter building codes. The influx of retirees is expected to rise. Which of the following factors is tending to move the demand curve for Florida housing to the right?
A. The aging of the baby boomers, increasing the number of people who are retiring B. The current high construction costs C. The increase in the cost of insurance D. The already high real-estate prices