At the beginning of 2015, a country is at full-employment. During 2015, oil-producing countries decrease oil production leading to much higher oil prices. The higher oil prices can
A) increase aggregate demand and lead to an expansion.
B) increase aggregate supply and lead to an expansion.
C) decrease aggregate demand and lead to a stagflation.
D) decrease aggregate supply and lead to a stagflation.
E) decrease aggregate demand and lead to a higher price level.
D
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When a professor announces to the class that she will grade on a curve and that no one in the class will receive a grade lower than a "C"
A. a moral hazard problem for her students will likely arise. B. an adverse selection problem for her students will likely arise. C. the marginal social benefit will exceed the marginal social cost. D. the marginal social cost will exceed the marginal social benefit.
Some of the most renowned examples of hyperinflation occurred in Austria, Hungary, Germany and Poland shortly after
A) the collapse of the Austro-Hungarian Empire. B) World War I. C) World War II. D) the fall of the Berlin Wall.
In the 1990s, many people had rising incomes. At the same time, there was a rise in cost of wood. Holding other factors constant, the demand for houses_________ and the supply for houses_________
a. Increase, increase b. Increase, decrease c. Decrease, increase d. Decrease, decrease
Special-interest groups engage in rent seeking to the extent, that they shift resources from productive endeavors to activities that transfer income to their special interests
Indicate whether the statement is true or false