The oil shock of 2007-2008 saw the price of oil rising from less than $60 a barrel in March 2007 to over $145 a barrel in July 2008, and decreasing again to just over $30 a barrel in December 2008
Assuming the economy was at potential GDP prior to the oil shock, the increase in the price of oil, such as what occurred between March 2007 and July 2008, acts as a negative supply shock, causing the inflation rate to ________ and the output gap to ________. A) increase; become negative
B) increase; become positive
C) decrease; become negative
D) decrease; become positive
A
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The supply curve of books (which are produced using paper made from trees) will shift to the left in response to
A. a decline in college tuition. B. an increase in home building. C. an increase in the supply of lumberjacks. D. an end to government regulations that limit timber harvesting in national forests.
The "Sonny Bono" Copyright Term Extension Act extended the copyright terms in the U.S. by 20 years. In addition, the act was applied to already existing copyrights
a. Discuss the advantages and/or disadvantages in terms of efficiency and monopoly power from the extension of the lifespan of new copyrights. In theory, what determines the optimal term of a copyright? b. Discuss the advantages and/or disadvantages in terms of efficiency and monopoly power from the extension of the lifespan of existing copyrights.
Which of the following is a component of aggregate demand?
a. Transfer payments from government b. Taxation by government c. Purchases by government d. Borrowing by government e. Saving by consumers
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What will be an ideal response?