The economy’s self-correcting mechanism to eliminate a recessionary gap relies on
A. falling interest rates that shift the aggregate demand curve outward.
B. falling wage rates that shift the aggregate supply curve outward.
C. rising wage rates that shift the aggregate supply curve inward.
D. increases in the price level that shift the aggregate supply curve inward.
Answer: B
You might also like to view...
Predatory pricing is
A. generally more effective when barriers to entry exist. B. often effective and a relatively inexpensive means of eliminating competition. C. the practice by which a large, powerful firm attempts to drive its competitors out of the market by temporarily setting an artificially low price. D. legal under the U.S. antitrust laws.
Which of the following is an example of basic research?
a. Conducting animal tests to determine if a product contains irritants b. Soft drink bottlers testing consumer reactions to their advertisements c. A statistician calculating the odds of winning a promotional sweepstakes that a company is running d. A catalog sales company timing its operators to see how many calls each is handling per day e. A chemist building a mathematical model of the atmosphere of Jupiter
Which of the following countries would have the most difficulty raising its level of average educational attainment?
a. Canada b. Italy c. India d. Sudan
When a positive externality exists, _______________________ and thus _______________ intervention may be needed to achieve efficiency
A) external costs are necessarily greater than private costs; government B) social costs equal private costs; no government C) social costs are less than private costs; government D) social costs are greater than private costs; government E) none of the above