If the government wished to shift aggregate demand to the left, it might:
A. decrease military spending.
B. decrease corporate income taxes.
C. increase the amount of educational grants available.
D. All of these would cause a decrease in aggregate demand.
Answer: A
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When the value of a currency is determined ________, the exchange rate system is defined as a floating exchange rate system
A) by its issuing government, with occasional readjustments in value B) only by supply and demand C) by its issuing government D) mostly by supply and demand, but with occasional government intervention
Define the three functions of money
What will be an ideal response?
The unemployment rate may:
A. understate the effect of a recession on employment because some leave the labor force. B. understate the effect of a recession on employment because many enter the labor force. C. overstate the effect of a recession on employment because some leave the labor force. D. overstate the effect of a recession on employment because many enter the labor force.
A supply schedule is characterized by which of the following?
(A) It shows the quantity supplied at only one price. (B) It lists supply for a specific good. (C) It is sensitive to changes in the costs of labor and parts. (D) It shows the factors that could influence supply.