Which of the following examples, ceteris paribus, would most likely cause rightward movement of the short-run aggregate supply curve for that economy?
a. The price level in Norway increases over several years.
b. Production costs increase in Mexico due to increased government regulation.
c. Deflation in the United States pushes down the price level.
d. Labor productivity declines in Canada after nominal wages also decline.
a. The price level in Norway increases over several years.
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The Food and Drug Administration (FDA) is an agency that would enforce
A) social regulation. B) economic regulation. C) antitrust laws. D) price discrimination.
An import quota specifies
A) the amount of funds that can be paid for any imported good. B) the amount of taxes that must be paid on any imported good. C) the maximum amount of an item that may be imported during a specified period. D) the minimum amount of an item that may be imported during a specified period.
For a competitive firm, the value of output ________ and the marginal product of labor ________ with each additional worker hired.
A. stays constant; decreases B. decreases; stays constant C. increases; increases D. increases; decreases
If we observe that every increase in income of $120 million generates an increase in consumption of $80 million, then the simple multiplier is
A. 2/3. B. 3/2. C. 2 D. 3 E. 8