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
Answer: D
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Gary has won a laptop in an online auction. This implies that Gary's willingness to pay for the laptop was ________
A) higher than its market price B) lower than its market price C) higher than that of the other bidders D) lower than that of at least one bidder
Nonconventional monetary policy attempts to reduce financial frictions by ________
A) correcting the shortage of liquidity that has made it costly for businesses to invest B) purchasing long-term assets, which raises their price and reduces the credit spread C) reducing the expected future short-term interest rate D) all of the above E) none of the above
In 2002, a majority of black single parents had never been married
Indicate whether the statement is true or false
If the U.S. experiences an enormous surge of immigration, we could predict it would make the labor supply:
A. increase and shift to the right. B. decrease and shift to the right. C. decrease and shift to the left. D. increase and shift to the left.