Which of the following would shift a supply curve to the right?
a. Taxes
b. Import restrictions
c. Import duties
d. Subsidies
Answer: d. Subsidies
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For an imaginary economy, the consumer price index was 80 in 2014, 100 in 2015, and 140 in 2016 . Which of the following statements is correct?
a. If the basket of goods that is used to calculate the CPI cost $40 in 2014, then that basket of goods cost $60 in 2015. b. If the basket of goods that is used to calculate the CPI cost $25 in 2015, then that basket of goods cost $35 in 2016. c. The overall level of prices increased by 60 percent between 2014 and 2016. d. All of the above are correct.
Which would shift the aggregate demand curve? A change in:
A. net export spending. B. the legal-institutional environment. C. input prices. D. the prices of imported resources.
According to classical economists, when aggregate demand decreases
A. unemployment is reduced, the price level increases, and equilibrium real GDP is reached. B. unemployment temporarily increases, the price level increases, and equilibrium real GDP is reached. C. unemployment temporarily increases, the price level decreases, and equilibrium real GDP is reached. D. unemployment is reduced, the price level decreases, and equilibrium real GDP is reached.
If a firm is forced to take external costs into account, it will
A) reduce production and charge a higher market price. B) increase production and charge a lower market price. C) reduce prices and hire more workers. D) reduce prices and hire fewer workers.