When future labor income rises in a large open economy, it causes the current account to ________ and investment to ________
A) fall; rise
B) rise; remain unchanged
C) fall; fall
D) rise; rise
C
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The interest rate effect is one of the
A) reasons why an AD curve is downward-sloping. B) shifters of an AD curve. C) reasons why a short-run aggregate supply curve can be derived. D) shifters of a short-run aggregate supply curve.
Which of the following statements is correct?
A) Utility and usefulness are synonymous. B) The marginal utility derived from successive units of a product tends to be similar for all consumers. C) Because utility is not measurable, the utility-maximizing rule provides no useful insights as to consumer behavior. D) A product may yield utility, but not be functionally useful.
Which of the following shifts aggregate demand to the right?
a. an increase in the price level
b. an increase in the money supply
c. a decrease in the price level
d. a decrease in the money supply
An increase in the marginal tax rate on labor income will shift the
a. labor supply curve leftward b. labor demand curve rightward c. labor supply curve rightward d. labor demand curve leftward