As a result of the war in Afghanistan, the population of Afghanistan as well as their capital stock was reduced. This can be illustrated by the aggregate supply curve
A. shifting outward.
B. becoming flatter.
C. shifting inward.
D. becoming more elastic.
Answer: C
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Figure 3-3
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In Figure 3-3, a shift from A to B seems most consistent with which of the following scenarios?
A. Society has decided to give guns lower priority. B. Technological advances have been greater for guns than for butter. C. The society has experienced a massive immigration of labor. D. There are unemployed resources in the production of both guns and butter.
All of the following were significant changes in the mortgage market in the 2000s EXCEPT
A) investment banks became significant participants in the secondary mortgage market. B) lenders loosened lending standards. C) mortgage-backed securities became more popular with investors. D) borrowers tended to increase the amount of their down payments.
A payment of $105 next year can be more valuable than a payment of $100 now
a. True b. False
When households' marginal propensity to consume (MPC) increases, the size of the spending multiplier:
a. also increases. b. decreases. c. remains unchanged. d. reacts unpredictably.