Which of the following statements best describes how economic growth is represented in the AD/AS diagram?
a. In the AD/AS diagram, long-run economic growth due to productivity increases over time will be represented by a dramatic shift to the right of aggregate supply.
b. In the AD/AS diagram, long-run economic growth due to productivity increases over time will be represented by a gradual shift to the right of aggregate supply.
c. In the AD/AS diagram, short-run economic growth due to productivity increases over time will be represented by a dramatic shift to the right of aggregate supply.
d. In the AD/AS diagram, short-run economic growth due to productivity increases over time will be represented by a gradual shift to the right of aggregate supply.
b. In the AD/AS diagram, long-run economic growth due to productivity increases over time will be represented by a gradual shift to the right of aggregate supply.
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When the housing bubble began to burst in 2006, investors became
A) more likely to purchase mortgage-backed securities since mortgage values had declined significantly, making the securities a better value. B) less likely to purchase mortgage-backed securities since the default rate on mortgages began to rise. C) more likely to purchase mortgage-backed securities since the higher rate of return made these investments much more profitable. D) less likely to purchase mortgage-backed securities since the government virtually took over the mortgage market.
Which is most likely to be observed in a community where price ceilings are imposed on residential rents?
A. Those whose needs for housing are most urgent will be able to obtain the space they want. B. Poor people will be able to find adequate housing. C. Homeowners will reduce their own use of housing space, making more available to others. D. People moving into the community will have difficulty locating residential space to rent.
The working-age population is divided between those people in the labor force and those people unemployed
Indicate whether the statement is true or false
Imperfect knowledge about hazardous effects of a product will likely result in
A. insufficient resources devoted to producing a product. B. consumers paying too high a price for a product. C. underconsumption of a product. D. the formation of trusts among firms.