when the AD and SAS curves intersect at a level of real GDP which exceeds potential GDP, which of the following will occur?
What will be an ideal response?
The AS curve shifts leftward because the money wage rate rises.
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When equilibrium is present in the foreign exchange market, which of the following will tend to be in balance?
a. the value of goods exported and the value of goods imported b. real and nominal interest rates c. imports plus capital outflow and exports plus capital inflow d. tax revenues and government expenditures
Which of the following statements is correct?
a. Buyers determine supply, and sellers determine demand. b. Buyers determine demand, and sellers determine supply. c. Buyers determine both demand and supply. d. Sellers determine both demand and supply.
When the absolute value of the price elasticity of demand falls in the range of 0 and 1, demand is said to be ________ , when it equals 1, demand is said to be ________ , and when the price elasticity of demand is greater than 1, demand is said to be ________
a. elastic, unitary elastic, inelastic b. inelastic, unitary elastic, elastic c. unitary elastic, elastic, inelastic d. inelastic, elastic, unitary elastic
Which is the most accurate statement?
A. The authority to run welfare programs resides mainly in the states. B. The authority to run welfare programs resides mainly in the federal government. C. When the 1996 welfare reform passed, it immediately removed 3 million people from the welfare rolls. D. The welfare reform law of 1996 will virtually abolish welfare by the year 2008.