Suppose that increased international trade makes product markets more competitive in the U.S. Given this information, we would expect to observe which of the following?
A) an upward shift in the WS curve
B) a downward shift in the WS curve
C) an upward shift in the PS curve
D) a downward shift in the PS curve
E) none of the above
C
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At a level of real disposable income of 0, consumption is $4000. Then
A) saving equals 0. B) saving equals -$4000. C) savings equal -$4000. D) saving equals $4000.
The following is NOT an example of a potential monitoring solution to moral hazard
a. a pre-hire typing test for clerical employees b. closed circuit TVs throughout a warehouse c. GPS tracking devices in repair trucks d. listening in on call center conversations
Why do many economists argue that modern macroeconomics began in the 1930s during the Great Depression?
a. The Great Depression disproved many of the concepts of traditional microeconomics, necessitating the growth of a new field of theory. b. The devastating effects of the Great Depression drove economists to discover ways to mitigate unemployment through economic policy. c. Macroeconomics developed as a way to capture growing interest in economics, previously an obscure field of study, following the Great Depression. d. Before the Great Depression, unemployment had little impact on national economies, and macroeconomic principles were largely inapplicable.
Economist John Maynard Keynes is famous for saying, "In the long run, we are all dead." He is referring to the:
A. fact that no policy can affect the long-run equilibrium. B. notion the economy is sure to collapse in the long run. C. length of time it can take the economy to recover to potential GDP without policy intervention. D. permanent inflation that results in long-run adjustments.