An increase in the expected future price level:
a. Shifts both SRAS and LRAS to the left
b. Shifts both SRAS and LRAS to the right.
c. Shifts SRAS left but leaves LRAS unchanged.
d. Shifts SRAS right but leaves LRAS unchanged.
c
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If everyone has identical preferences over public goods, Lindahl prices for providing the efficient level of the public good will be the same for everyone.
Answer the following statement true (T) or false (F)
The total civilian labor force is comprised of
A) the unemployed and the employed. B) only the employed. C) all individuals over 16 years of age, whether or not they work or are seeking work. D) only full-time employed individuals between the ages of 18 and 55.
Which of the following is a reason why a country barely at subsistence levels cannot achieve growth very easily?
a. It cannot decrease capital goods in order to increase consumption goods. b. The lower income means that Say's law does not apply here. c. Too much savings exist and therefore it remains underutilized. d. It cannot decrease consumption goods in order to increase capital goods. e. It cannot decrease capital goods in order to also decrease consumption goods.
If the CPI declines from one year to the next, then the following statements are true, except:
A. There is deflation B. The inflation rate is negative C. The average price level is decreasing D. The CPI turns negative in the next year