Suppose the Asian financial crisis decreased U.S. exports. In the aggregate demand/aggregate supply model, this would be represented as
A) a shift to the right of aggregate supply, which would result in more production for the U.S. economy.
B) a shift to the left of aggregate supply, which would result in less production for the U.S. economy.
C) a shift to the right of aggregate demand, leading to more spending and production in the U.S. economy.
D) a shift to the left of aggregate demand, leading to less spending and production in the U.S. economy.
D
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Refer to the table above. If, at a price of $4 per loaf, the market supply of bread is 75 loaves, Seller 2's supply is:
A) 30 units. B) 35 units. C) 55 units. D) 20 units.
Using the information in Table 6.2, the inflation rate from 2015 to 2016 is about
A) 4 percent. B) 5 percent. C) 17 percent. D) 31 percent.
Does fiscal policy affect monetary policy?
A) No, because real output and income can and sometimes do move in the opposite direction from nominal money output and income. B) Yes, because the Fed and the Treasury naturally tend to pursue similar goals. C) Yes, because government deficits or surpluses affect the total demand for credit. D) Yes, because the government usually prints new money to finance deficits and retires that money when it runs a surplus.
Which of the following is an example of a normative statement?
A. The American Recovery and Reinvestment Act should not have been passed during the Great Recession. B. An increase in alcohol taxes will reduce the number of drunk driving accidents. C. Great Britain has fewer hospital beds per capita today than they did in 1948. D. Unemployment soared to 25 percent during the Great Depression.