A shift of the AD curve
A) to the right is considered expansionary, and a shift to the left is considered contractionary.
B) to the left is considered expansionary, and a shift to the right is considered contractionary.
C) to the right or to the left is considered contractionary.
D) to the right or to the left is considered expansionary.
A
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Explain what the Five Forces Model is useful for and identify each of them
What will be an ideal response?
An increase in wages can cause a relatively big decrease in employment when
a. product demand is inelastic b. labor demand is elastic c. there is a closed shop d. the MRP curve is inelastic e. the MRP curve shifts to the right
Which of the following functions does the Fed perform?
A. Printing money B. Holding bank reserves C. Providing loans to other countries D. All of the above are functions the Fed performs.
In the Keynesian model, the larger the marginal propensity to consume, the:
A. larger the multiplier. B. larger the marginal propensity to save. C. higher the income level of the economy. D. smaller the change in income derived from a given change in government spending.