An increase in government expenditure would shift the:
A) aggregate demand curve rightward.
B) aggregate demand curve leftward.
C) aggregate supply curve rightward.
D) aggregate supply curve leftward.
A
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Last year your job at the university cafeteria paid you $9 an hour and the price of a music download was $1.00. This year your cafeteria job pays $9.90 per hour and download costs $1.10. You are clearly
A. worse off because of inflation. B. worse off because the download is now relatively more expensive. C. better off because your wage rate went up. D. better off because the download now costs less work.
Pizza at Home is a frozen pizza company that supplies several large grocery store chains. The managers of Pizza at Home are currently negotiating a four year contract with Saucy Pizza, a manufacturer of pizza sauce. Saucy Pizza will supply a specified quantity of canned tomato sauce to Pizza at Home over a four year period; however; Pizza at Home can ends its contract with Saucy Pizza at the end
of the first, second, or third years if Saucy Pizza does not supply quality tomato sauce. What can the manager of Pizza at Home do to avoid the end-game problem? A) Inform Saucy Pizza that Pizza at Home will nominate them for a supplier industry award if they provide quality tomato sauce in all four years. B) Pay Saucy Pizza in installments at the end of the first, second, and third years. C) Pay Saucy Pizza in equal installments at the end of each of the four years. D) Pay Saucy Pizza in full at the beginning of the first year.
The costs of investment depend on the ________ and the ________.
A. relative price of the firm's output; real interest rate B. price of new capital goods; real interest rate C. taxes levied on the revenue generated; relative price of the firm's output D. marginal product of capital; relative price of the firm's output
If a developing country has sufficient reserves, the buying and selling of foreign currency by the central bank is:
A. likely to have a much smaller impact on the exchange rate than in developed countries. B. completely ineffective on the exchange rate. C. likely to have a much greater impact on the exchange rate than in developed countries. D. likely to have roughly the same impact on the exchange rate as in developed countries.