Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply.
B. a reduction in aggregate demand.
C. an increase in long-run aggregate supply.
D. an increase in aggregate demand.
Answer: B
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A review of U.S. history provides evidence that
(a) class mobility is restricted. (b) race and gender barriers simply cannot be dismantled. (c) the wealthy and idle rich class has deep and permanent roots in the U.S. (d) there are no social barriers that cannot be overcome in the U.S.
Which of the following taxes is based on the ability-to-pay principle?
a. Road taxes paid by the buyers of gasoline b. Progressive income taxes that pay for scientific research c. Payroll taxes that pay for Social Medicare d. Education taxes paid by parents
Slower growth in labor demand in combination with increases in labor supply explains ________ accompanied by ________.
A. a slowdown in real wage growth; a decline in employment B. a slowdown in real wage growth; increasing wage inequality C. accelerated real wage growth; a decline in employment D. a slowdown in real wage growth; rapid employment growth
Suppose you have $2000 in currency in a shoebox in your closet. One day, you decide to deposit the money in a checking account. How will this action affect the M1 and M2 definitions of the money supply?
A. Both M1 and M2 will remain unchanged B. M1 will decrease and M2 will increase C. Both M1 and M2 will increase by $2000