Higher resource prices shift the...
What will be an ideal response?
short-run aggregate supply curve leftward, rising the price level and decreasing real GDP so it is less than potential GDP
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Who is associated with the following summary of the economic way of thinking: "The theory of economics does not furnish a body of settled conclusions immediately acceptable to policy
It is a method rather than a doctrine, an apparatus of the mind, a technique of thinking which helps its processer draw correct conclusions." A) Adam Smith B) John Maynard Keynes C) President Harry Truman D) Alfred Marshall
Suppose you use your debit card to buy soda from a soda machine. Which of the following is true regarding the transaction?
A) The debit card is not money; it's only an instruction to make a loan. B) The debit card is money; your use reflects the exchange of a good. C) The debit card is not money; its use is only a tool to cause money to move from your account. D) Your use makes the debit card money, as funds are transferred between your account and the machine owner. E) Using the debit card is like using a check and is, therefore, money.
In a market, the rationing function of prices results in
A. long waiting lines. B. a shortage or surplus. C. a price ceiling. D. an equilibrium between supply and demand.
Any transaction that leads to a payment by a country's residents or government is a(n)
A. deficit item. B. surplus item. C. debt. D. asset.