Think of resources: The aggregate supply curve will shift to the right when the
a. quantity of labor in the society decreases
b. capital stock in the economy shrinks
c. quantity of natural resources in the society gets smaller
d. quantity of labor in the economy increases
e. price level in the economy rises
D
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Compare and contrast Say's views of the macroeconomy with that of Keynes. What does each have to say about the economy in relationship to its potential level of real GDP?
What will be an ideal response?
Assume that both the demand curve and the supply curve for DVD players shift to the left but the supply curve shifts more than the demand curve. As a result,
A) both the equilibrium price and quantity of DVD players will decrease. B) the equilibrium price of DVD players will decrease; the equilibrium quantity may increase or decrease. C) the equilibrium price of DVD players may increase or decrease; the equilibrium quantity will increase. D) the equilibrium price of DVD players will increase; the equilibrium quantity will decrease.
When the dollar rises relative to other currencies,
A) foreign goods are more expensive in terms of dollars. B) foreign currency is more expensive in terms of dollars. C) U.S. goods become more expensive to foreigners. D) foreign currency is more expensive in the United States, but foreign goods are cheaper.
The rationale for rent control is that it protects moderate- to low-income families from the burden of rapidly rising rents and from eviction if they are unable to pay. It also prevents landlords from reaping windfalls as property values rise. Opponents note that rent controls usually lead to a reduced supply of rental housing and shortages. The proponents of rent controls support them primarily on the grounds of
A. efficiency. B. equality. C. externalities. D. cost disease of services.