For a given inflation rate, if increasing threats to domestic security cause the government to increase military spending, then the ________ shifts ________.
A. aggregate demand curve; left
B. aggregate demand curve; right
C. short-run aggregate supply line; downward
D. short-run aggregate supply line; upward
Answer: B
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The exchange rate is
A) the price of one currency relative to gold. B) the value of a currency relative to inflation. C) the change in the value of money over time. D) the price of one currency relative to another.
In an expanding economy,
a. prices rise faster than costs. b. costs rise faster than prices. c. profit margins decrease. d. interest rates fall.
The term opportunity cost refers to the
A. Financial costs of all the factors of production used to produce a good or service. B. Value of every other good given up when a good or service is obtained. C. The most desired good or service given up when something is obtained. D. Amount of resources used to produce a good but not a service.
National income includes all of the following EXCEPT
A. corporate profits. B. net interest. C. proprietors' income. D. depreciation.