After an adverse supply shock occurs, the ____________ curve shifts _____________ resulting in a(n) _________________ in the price level and a(n) ________________ in Real GDP
A) AD; leftward; decrease; decrease
B) AD; rightward; increase; increase
C) SRAS; rightward; decrease; increase
D) SRAS; leftward; increase; decrease
D
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Which of the following is an impact of a rent ceiling set below the equilibrium rent?
A) Renters find apartments to rent more rapidly because the rent ceiling is lower. B) Landlords' incentives to provide apartments decrease. C) The supply of apartments increases as soon as the rent ceiling is imposed. D) A surplus of housing occurs. E) Search for apartments decreases because renters need no longer search for the apartment with the lowest rent.
In purchasing diamonds and water, a consumer would maximize utility by
a. dividing expenditure equally between those two goods b. equating the marginal utilities from each of those two goods c. equating average utility per diamond with average utility per unit of water d. equating the total utility per diamond with the total utility per unit of water e. equating marginal utility per dollar spent on each of those two goods
Which is the most accurate statement?
A. The authority to run welfare programs resides mainly in the states. B. The authority to run welfare programs resides mainly in the federal government. C. When the 1996 welfare reform passed, it immediately removed 3 million people from the welfare rolls. D. The welfare reform law of 1996 will virtually abolish welfare by the year 2008.
The capital account balance equals
A. Foreign purchases of U.S. assets plus U.S. purchases of foreign assets. B. The negative of the current account balance. C. The current account balance minus imports. D. The balance of payments plus the sum of the merchandise balance, the services balance, and unilateral transfers.