Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward
B. Short-run aggregate supply shifting downward
C. Aggregate demand shifting rightward
D. Aggregate demand shifting leftward
Answer: B
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Under the U.K. Bribery Act, facilitating payments ________ illegal and receipt of bribes ________ illegal.
A) is not; is not B) is not; is C) is; is D) is; is not
Real income for a given year would be less than nominal income in that year if:
a. the consumer price index was less than 100 in that year. b. nominal income in that year was greater than nominal income in the previous year. c. nominal income in that year was less than nominal income in the previous year. d. the consumer price index was greater than 100 in that year.
Economists who believe that market economies are inherently unstable argue that the crisis of 2008 was primarily the result of
a. the expansionary policies of the Fed that caused the housing boom. b. housing regulations that undermined sound lending practices. c. the leveraged lending practices of banks and the fear that retarded both consumption and investment in the latter half of 2008. d. persistently high interest rates during the decade leading up to the crisis.
The concept of opportunity cost describes:
(a) The lost benefits that result from a decision taken by a consumer; (b) The lost benefits of the next best alternative to the decision taken; (c) The cost in interest to acquire the funds needed to make a decision; (d) None of the above.