If the aggregate supply curve is flat,
a. expansionary fiscal or monetary policy will cause a good deal of inflation with little increase in real output.
b. expansionary fiscal or monetary policy will buy large gains in real output at low cost in terms of inflation.
c. a contractionary stabilization policy is an effective way to reduce inflation.
d. decreasing the income tax will not shift aggregate demand.
b
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
The PPP index:
A. describes the overall inequality present in one country compared to another. B. describes the overall differences in poverty levels between countries. C. describes the overall difference in prices between countries. D. None of these is true.
When we compare economic welfare in a monopoly market to a competitive market, the profits earned by the monopolist represent
a. a transfer of benefits from the consumer to the producer. b. a loss in total welfare. c. the higher marginal costs incurred by the monopolists in comparison to competitive firms. d. the higher marginal revenues gained by the monopolists in comparison to competitive firms.
There is evidence that __________ were the main lobbyists behind passage of the Factory Acts which put restrictions on women and children working in early 19th century England
A) male workers B) female workers C) child-care advocates D) factory owners