According to supply-side theory, which of the following will shift the aggregate supply curve to the right?
A. A reduction in discrimination.
B. A higher minimum wage.
C. A reduction in spending on education.
D. Higher marginal tax rates.
Answer: A
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If an economy has a fixed exchange rate and it chooses to issue $10 million in bonds, what will happen according to the Monetary approach?
A) It will have to increase its foreign exchange reserves. B) It will have to decrease its foreign exchange reserves. C) It will have to allow its currency to appreciate. D) It will have to allow its currency to depreciate.
Economic theory indicates that the growth of subsidies to healthcare consumers and accompanying expansion in third-party payments will
a. place downward pressure on the prices of healthcare services. b. lead to higher healthcare prices. c. increase the incentive of consumers to economize on their purchases of healthcare services. d. increase the incentive of healthcare providers to provide their services at economical prices.
If output is greater than planned aggregate expenditure, there will be
A. an unplanned decrease in inventories. B. no change in inventories. C. an unplanned increase in inventories. D. a planned increase in inventories.