Other things being equal, a reorganization of the OPEC cartel to permit it to increase world oil prices by 70 percent would most likely have which effect?
a. It would shift the aggregate demand curve right and the aggregate supply curve left
b. It would shift the aggregate supply curve left
c. It would shift the aggregate supply curve right
d. It would shift the aggregate demand curve right
b. It would shift the aggregate supply curve left
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If, for a product, the quantity supplied exceeds the quantity demanded, the market price will fall until
A) all consumers will be able to afford the product. B) the quantity demanded exceeds the quantity supplied. The market will then be in equilibrium. C) quantity demanded equals quantity supplied. The equilibrium price will then be lower than the market price. D) quantity demanded equals quantity supplied. The market price will then equal the equilibrium price.
Everything else held constant, if the sum of the required reserve ratio and the excess reserve ratio is greater than one, an increase in the currency-deposit ratio causes the M1 money multiplier to ________ and the money supply to ________
A) decrease; increase B) increase; increase C) decrease; decrease D) increase; decrease
Which of the following events is the most likely to create stagflation?
A. An increase in the money supply. B. A reduction in the amount spent on national defense. C. A doubling of oil prices. D. A decrease in investment spending.
Which of the following explains the impact of technological advances on the wage gap between less skilled workers and highly skilled workers?
A. Advances in technology have increased the demand for higher education degrees and widened the wage gap between the two groups. B. Advances in technology have increased the productivity of less skilled workers and thus narrowed the wage gap between the two groups. C. Advances in technology have increased the demand for less skilled workers and highly skilled workers alike, and thus the wage gap between the two groups remains unchanged. D. None of these