When a good is imported, the domestic production of it ________ and the domestic consumption of it ________
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
E) increases; does not change
C
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The typical American family spends about ____ percent of its budget on goods and the remainder on services.
A. 22 B. 32 C. 66 D. 80
A short-run aggregate supply curve (SRAS) assumes: a. the CPI is fixed
b. each point on the SRAS is potential real GDP. c. fixed or sticky nominal wages. d. nominal wages vary directly with price changes.
Recent legislation passed by the government increases the cost of health insurance and retirement benefits borne by all companies. Which of the following is a likely result? a. The supply of labor will decrease
b. The quantity of labor demanded will increase. c. The demand for labor curve will shift to the left. d. The marginal product of labor will increase.
Discuss the dangers of inflation; that is, why may it hurt an economy?