Which of the following causes a leftward shift in the short-run aggregate supply curve?
A. an increase of goods prices while nominal incomes are unchanged
B. an increase in nominal incomes (wages and salaries)
C. an increase of full-employment real GDP
D. an increase of personal consumption expenditures while the price level is unchanged
Answer: B
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If an early frost destroys most of the apple crop, the equilibrium price of an apple ________ and the equilibrium quantity ________
A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases E) does not change; decreases
A bank manager advises all of his loan officers that the average cost of funds for the bank over the past year has been 6%. The bank has borrowed $1 million at 5%, another $1 million at 6% and another $1 million at 7%
Future borrowing costs are expected to continue at 7%. The manager however, instructs his loan officers that they are authorized to make loans at interest rates that are equal to or greater than the bank's average cost of borrowing. How would you evaluate the bank manager's decision?
The process of commercializing a new technology is called
a. invention b. adaptation c. research and development d. innovation e. all of the above
One way of reducing our trade deficit would be to get Americans to
A. save more and consume more. B. save more and consume less. C. save less and consume less. D. save less and consume more.