Refer to the above figure. Unexpected contractionary monetary policy has caused the aggregate demand curve to shift to AD2. In the short run
A) the unemployment rate will be larger than the rate before the contractionary monetary policy.
B) the unemployment rate will be smaller than the rate before the expansionary monetary policy.
C) the unemployment rate will be the same rate as before the expansionary monetary policy.
D) the unemployment rate can increase or decrease depending upon how much the LRAS will shift.
A
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Andy spends $30 a week on movies and magazines. The price of a movie is $8, the price of a magazine is $2, and Andy sees 3 movies a week and buys 3 magazines
The price of a magazine increases to $4 and Andy's brother gives him $6 a week so that he can still see 3 movies a week and buy 3 magazines. In this situation, Andy will see ________ movies a week and buy ________ magazines. A) fewer than 3; fewer than 3 B) 3; 3 C) fewer than 3; more than 3 D) more than 3; fewer than 3
Critics of an equal distribution of income argue that the effect would be to reduce the incentive to be productive
a. True b. False Indicate whether the statement is true or false
Unions can only achieve wage gains by sacrificing employment
a. True b. False Indicate whether the statement is true or false
Refer to the above graph. The profit-maximizing monopolist shown sets its output at:
A. 0Y. B. 0X. C. 0T. D. 0V.