Economic growth will NOT result in deflation if aggregate demand shifts
A) outward to the right at the same speed as aggregate supply.
B) inward to the left at the same speed as aggregate supply.
C) outward to the right as aggregate supply shifts inward to the left.
D) inward to the left as aggregate supply shifts outward to the right.
A
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Dissaving occurs when
A. income is greater than saving. B. saving is greater than the interest rate. C. saving is greater than consumption. D. income is less than consumption.
The more generous the amount of unemployment benefits, the
A) lower the opportunity cost of job search. B) shorter the time spent searching for a suitable job and the higher the opportunity cost of being unemployed. C) shorter the time spent searching until accepting a suitable job. D) higher the opportunity cost of job search. E) lower the natural unemployment rate.
Because government bodies have the power to impose limits on how much of a resource is consumed:
A. it can be efficiency enhancing in markets for common resources. B. it will always cause deadweight loss. C. they decide what is the "right" amount for the public to consume. D. they will often correct a market before testing the effectiveness of social norms to correct the problem.
The unexpected gain or loss of income that a person experiences that is the difference between a person's regular and actual income in any year is known as
a. life-cycle income b. relative income c. investment income d. permanent income e. transitory income