In what way can the stock market affect the overall economy?
A) It's an important source of funds for corporations.
B) It can affect consumer and business sentiment.
C) It is an important factor affecting consumer wealth and thus consumer spending.
D) All of the above
D
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Which of the following could create a movement along the short-run Phillips curve so that the unemployment rate temporarily falls below the natural unemployment rate?
A) an increase in aggregate demand and a quickly responsive wage rate B) a decrease in aggregate demand and a sticky wage rate C) an increase in aggregate demand and a sticky wage rate D) an increase in aggregate supply and a sticky wage rate E) a decrease in aggregate demand and a quickly responsive wage rate
The long-run aggregate supply curve shifts right if
a. the price level rises. b. the price level falls. c. the capital stock increases. d. the capital stock decreases.
There is an empty lot between a playground and a storage unit that has become filled with garbage and overgrown weeds. The lot is surrounded by a fence with a gate. Pipes run beneath it so that anything built there could have access to the city sewer and water supply. Which aspect of the empty lot would economists label as “bads”?
a. the access to water and sewer b. the proximity to the playground and storage unit c. the garbage and weeds d. the fence and the gate
Humana Hospital's price/marginal cost ratio of 2.3 is most likely to decline if
A) the number of nearby hospitals increases. B) the number of nearby hospitals decreases. C) the demand curve for hospital services shifts rightward. D) the demand curve for hospital services becomes steeper.