Suppose a drop in prices in the stock market makes people feel less financially secure. This would cause __________ the economy's AD curve
A) movement down along
B) movement up along
C) a rightward shift of
D) a leftward shift of
D
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A person 16 years or older who does not work, but is actively looking for work, is officially classified as:
A. chronically unemployed. B. employed. C. out of the labor force. D. unemployed.
The income effect for an inferior good
A) is negative. B) is zero. C) is positive. D) could be negative, zero, or positive.
Permitting the exchange rate to float
A) automatically reduces the real income effects of volatility in aggregate expenditures. B) will result in dramatic shifts in the balance of payments. C) will induce locomotive effects between most trading partners. D) will result in the complete crowding-out effect of fiscal spending.
Dividends are paid by corporations out of _____ leading to _____
a. pre-tax income; dividends escaping taxation b. pre-tax income; the double taxation of saving c. after-tax income; dividends escaping taxation d. after-tax income; the double taxation of saving