In the short run, the aggregate supply curve reacts to:
A. price changes.
B. wage warfare.
C. cartels.
D. price ceilings.
A. price changes.
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If the actual unemployment rate is less than the natural rate of unemployment, there will be a tendency toward:
a. increased inflation and a leftward shift of the short-run Phillips curve. b. decreased inflation and a rightward shift of the short-run Phillips curve. c. increased inflation and a rightward shift of the short-run Phillips curve. d. decreased inflation and a leftward shift of the short-run Phillips curve.
If all of the following examples are elastic, which one will most likely have an increase of revenue?
a. The price of shower curtains rises. b. The price of cell phones falls. c. The price of raspberries remains constant. d. The quantity supplied of skin moisturizer remains constant.
If personal income tax rates are decreased in an attempt to stimulate spending, we should expect to see
A. an increase in consumption and an increase in GDP. B. an increase in consumption and a decrease in GDP. C. a decrease in consumption and a decrease in GDP. D. a decrease in consumption and an increase in GDP.
When researchers use the damage function method, they
a. model the relationship between the cost of the policy and the associated reduction in environmental damages b. can directly measure the reduction in environmental damage in monetary units c. measure the link between a policy-induced decrease in contamination and the associated reduction in environmental damage d. can measure all aspects of incremental benefits at once