Greater and more extensive government regulations of safety standards and environmental controls will have what effect on short-run and long-run aggregate supply?
Increased government regulation, limits, or taxes caused the costs of production to increase. This will result in both the short-run and the long-run aggregate supply curves shifting to the left if these efforts are considered to be permanent.
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When the interest rate is above the equilibrium interest rate there is an
A) excess quantity of money and people will sell bonds. B) excess demand for money and people will sell bonds. C) excess quantity of money and people will buy bonds. D) excess demand for money and people will buy bonds.
When the price level falls, the ________ curve for nominal money ________, and interest rates ________, everything else held constant
A) demand; decreases; fall B) demand; increases; rise C) supply; increases; rise D) supply; decreases; fall
The following are reasons for studying randomized controlled experiment in an econometrics course, with the exception of
A) at a conceptual level, the notion of an ideal randomized controlled experiment provides a benchmark against which to judge estimates of causal effects in practice. B) when experiments are actually conducted, their results can be very influential, so it is important to understand the limitations and threats to validity of actual experiments as well as their strength. C) randomized controlled experiments in economics are common. D) external circumstances sometimes produce what appears to be randomization.
Assume an economy is in equilibrium at a real GDP of $5 trillion. If aggregate expenditure (AE) increases by $1 trillion, the economy's equilibrium real GDP is likely to _____
a. increase by $1 trillion b. increase by more than $1 trillion c. increase by less than $1 trillion d. decrease by $1 trillion e. decrease by more than $1 trillion