A decrease in a supply of oil could ____
a) increase long-run aggregate-supply.
b) decrease long-run aggregate-supply.
c) have no impact on long-run aggregate-supply.
d) increase aggregate-demand.
Ans: b) decrease long-run aggregate-supply.
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In his second term, President George W. Bush revived his earlier proposal to
A. eliminate entirely the Social Security taxes paid by employers. B. place some Social Security taxes of young workers in private accounts under their control. C. place all Social Security taxes of young workers in private accounts under their control. D. reduce by one-half the Social Security tax rates on employers.
Refer to Table 2-2. Assume Billie's Bedroom Shop only produces pillows and blankets. Billie faces ________ opportunity costs in the production of pillows and blankets
A) negative B) constant C) decreasing D) increasing
A ________ is a final good and ________ is an intermediate good
A. new car bought by a student; a used SUV bought by a dealer B. new textbook; used textbook C. new iPhone bought by a student; new computer bought by Wal-Mart D. tank of gasoline bought by you; jet fuel bought by Southwest Airlines
If velocity is highly unstable, then targeting the money supply
a. will be effective in stabilizing the LM curve and interest rates. b. has the same effects as targeting interest rates. c. will be ineffective in stabilizing aggregate demand. d. none of the above.