If the long-run equilibrium of an economy is disrupted by an unanticipated increase in aggregate demand (such as might result from unexpectedly strong demand for exports due to the rapid growth of incomes abroad),
a. the price of resources will decrease.
b. the natural rate of unemployment will decrease.
c. actual unemployment will temporarily fall below the natural rate.
d. prices will decrease.
C
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
What is meant by utility?
What will be an ideal response?
When economists refer to investment expenditures they mean the
A. use of today's resources to expand tomorrow's production or consumption. B. purchase of a consumer nondurable goods. C. purchase of stocks or bonds. D. production of intermediate goods.
As women's wages have risen relative to men's wages, the opportunity cost to women of doing housework has ________ than has the opportunity cost to men
A) increased less B) increased more C) decreased more D) decreased less