The aggregate supply curve is positively sloped because as the price level increases:
A. Profit margins increase in the short run.
B. Costs of production decline in the short run.
C. The purchasing power of money increases.
D. The cost of borrowing declines.
A. Profit margins increase in the short run.
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If you overhear a group of people talking about their plans to save for their retirement and one of them says that it causes them to save less because, as they reason it, "the government is saving for me," you would attribute this to the
A. asset substitution effect. B. induced retirement effect. C. slovenly effect. D. bequest effect.
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
Money is defined as
A) a by product of a barter economy. B) any financial instrument that is backed by gold. C) anything people generally accept in exchange for goods and services. D) a person's net worth.
To be officially unemployed a person must be in the labour force and must:
What will be an ideal response?