In the above figure, the economy is initially at point B. If taxes increase, there is
A) a movement to point C.
B) a movement to point A.
C) a shift to AD2.
D) a shift to AD1.
C
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The quantity that sellers wish to sell tends to ________ as price increases, and so the supply curve is ________ sloping.
A. increase; upward B. decrease; downward C. decrease; upward D. increase; downward
Graphically an increase in the short-run aggregate supply line represents a(n) ________, and a shift leftward of the long-run aggregate supply line represents a(n) ________.
A. adverse inflation shock; shock to potential output B. favorable inflation shock; shock to potential output C. shock to potential output; favorable inflation shock D. shock to potential output; adverse inflation shock
The increase in unemployment associated with a recession is called:
a. structural unemployment. b. frictional unemployment. c. discouraged unemployment. d. cyclical unemployment. e. temporary unemployment.
When faced with the Great Recession, both Presidents, most members of Congress and Federal Reserve officials showed that they were really true believers in the ____________ school of economic thought.
A. Keynesian B. Supply side C. New Classical D. Behaviorist