A decrease in supply, holding demand constant, will cause:
A. Higher prices and a larger quantity sold
B. Higher prices and a smaller quantity sold
C. Lower prices and a smaller quantity sold
D. Lower prices and a larger quantity sold
Answer: B
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According to supply-side economists, the incentive to save during the Clinton Administration fell due to a combination of
a. an increase in net export and a budget surplus. b. an increase in the tax rates on upper-income Americans and more government regulation. c. higher inflation and higher tax rates on lower-income Americans. d. None of the above
The use of specialization to achieve economies of scale is one reason modern societies are as prosperous as they are
a. True b. False Indicate whether the statement is true or false
Under a fixed exchange rate regime, an expansionary fiscal policy would ____ interest rates and GDP, which would cause ____ pressure on the exchange rate, forcing the monetary authority to undertake a(n) ______ monetary policy.
A) raise; downward (appreciation); expansionary B) lower; upward (depreciation); contractionary C) raise; upward (depreciation); contractionary D) lower; downward (appreciation); expansionary
Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called
What will be an ideal response?