According to monetary theories, a decrease in the money supply shifts the aggregate:
A. Supply curve to the left.
B. Supply curve to the right.
C. Demand curve to the left.
D. Demand curve to the right.
C. Demand curve to the left.
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Refer to Figure 11-1. Within a country, the impact of wars and revolutions and their subsequent destruction of capital is reflected in the per-worker production function in the figure above by a movement from
A) C to A. B) A to B. C) B to A. D) B to C.
What leads to chronic deficits on U.S. current account?
a. declining value of the dollar and uncertainty about its future b. devaluation of the dollar c. imports being greater than exports year after year d. foreigners buying up U.S. assets in the U.S. year after year e. more exports and fewer imports year after year
The distribution of surplus received from a subsidy offered in a market where a positive externality is present depends on:
A. if those who are affected receive their true value of the externality. B. where the government gets the money to pay for the subsidy. C. how the subsidy is distributed among those affected by the externality. D. None of these statements is true.
The savings function tends to ____________________ during and shortly after a recession.
Fill in the blank(s) with the appropriate word(s).