Rational expectations theorists feel that the economy is ______ after macroeconomic shocks occur.
a. stable
b. slower
c. inoperative
d. strongest
a. stable
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Refer to the below graph of the market for low-skilled labor. Sd is the supply of domestic resident workers, and St is the total supply of labor including undocumented workers. If there are illegal immigrants in the market, how many illegal immigrants will be employed?
A. 15M
B. 120M
C. 135M
D. 22M
Use the following graph to answer the next question.
Suppose the economy is in equilibrium at point C. A personal income tax cut would most likely
A. move the economy upward from point C along AD1. B. cause the AS curve to shift to the right. C. move the economy downward from point C along AD1. D. move the economy from point C toward point B.
When a country exports something to the rest of the world, domestic consumers ________ because the greater the ________ in price and ________ in quantity bought, the greater is the consumers' loss
A) win; rise; increase B) lose, rise; decrease C) win; rise; decrease D) lose; rise; increase E) lose; fall; decrease
Which of the following goods is likely to be sold through an auction?
A) a loaf of bread from a local bakery B) the rights to drill for oil on a specified 200 acres in Texas C) an ear of corn D) a bag of flour