Which of the following will cause an outward (rightward) shift in the supply curve?
A) a reduction in the price of the good
B) an increase in the price of labor input
C) an increase in the number of consumers
D) technological progress
Answer: D
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Three candidates for political office disagree over the benefits of enlarging the federal budget deficit
Candidate C says the stimulation package is needed to increase employment and real GDP; Candidate D says it will only cause higher prices; and Candidate F says it will have no effect on either real GDP or the price level. How do the three candidates differ with respect to the condition of the economy and the effects of fiscal policy? A) Candidate C thinks the simple Keynesian model is applicable, while D thinks the expansionary policy will fully crowd out private investment. F believes the economy is experiencing a recessionary ga
Since the "winners" from free trade can more than compensate the "losers" why does it matter if wages and employment fall when a country engages in free trade?
What will be an ideal response?
Suppose in 2003, President Bush and the Congress made consumer credit harder to obtain. This would have the effect of
a. shifting the investment curve up b. shifting the investment curve down c. shifting the consumption curve up d. shifting the consumption curve down e. increasing the level of investment
The basic difference between macroeconomics and microeconomics is:
A. microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade. B. microeconomics concentrates on the behavior of individual consumers while macroeconomics focuses on the behavior of firms. C. microeconomics concentrates on the behavior of individual consumers and firms while macroeconomics focuses on the performance of the entire economy. D. microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment.