Business optimism about future sales tends to __________ investment expenditures, shifting the AD curve to the __________
A) increase; left
B) increase; right
C) decrease; left
D) decrease; right
B
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The main sources of cost-push inflation are increases in
A) the money wage rate and the price of raw materials. B) the real wage rate and the price of raw materials. C) the money wage rate and aggregate demand. D) the quantity of money and the real wage rate. E) government expenditure and the quantity of money.
The organized groups of people who favor government intervention do so at the expense of other groups because even government resources are limited
Indicate whether the statement is true or false
Canada and the U.S. are the world's greatest trading partners. But they wouldn't trade at all if
a. the opportunity costs for the goods they produce are the same in both countries b. the opportunity costs are unequal for all the goods they produce c. their production possibilities curves are unequal d. they had a history of mutual retaliation e. their resources were of different qualities
It can be shown that the Nash equilibrium would indicate that without any agreements, the best outcome for each large nation would be to:
a. not impose a tariff. b. impose a tariff. c. find other ways to reward their domestic firms. d. impose a consumption tax.