Refer to Figure 16-6. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely pursue
A) contractionary fiscal policy.
B) expansionary monetary policy.
C) expansionary fiscal policy.
D) expansionary automatic stabilizers.
E) contractionary monetary policy.
A
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If inventory levels are decreasing, then we should expect business firms to
A. decrease prices. B. decrease output. C. lay off workers. D. increase output.
According to the factor price equalization theorem, if country A is labor abundant, then if country A initiates international trade
A) wages and rents should fall in A. B) rents and rents should rise in A. C) wages should rise and rents should fall in A. D) wages should fall and rents should rise in A.
Suppose the demand curve for movie tickets has unitary price elasticity and the supply curve is perfectly price elastic
If 3 million tickets are currently sold at a price of $5, approximately how much tax revenue could the government generate from a $1 specific tax? A) $18 million B) $3 million C) $2.5 million D) $1.5 million
Which of the following are substitute goods?
A) margarine and butter B) peanut butter and jelly C) pizza and soda D) trucks and gasoline