The increase in world oil prices in 1990 initially
a. caused the AS curve to shift upward as wage rates quickly adjusted
b. increased the level of GDP associated with high price levels
c. shifted the aggregate expenditure line upward
d. caused the AS curve to shift upward due to higher costs per unit of output
e. caused the AD curve to shift leftward due to an increasing interest rate
D
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In the United States decisions to increase interest rates are made by the ________ and decisions to increase taxes are made by ________.
A. Congress; the Federal Reserved. B. the Federal Reserve; Congress C. Congress; Congress D. the Federal Reserve; the Federal Reserve
Real-wage unemployment is:
A. a mismatch between the skills workers can offer and the skills that are in demand. B. unemployment caused by workers who are changing their location, job, or career. C. the effect of wages remaining persistently above the market-clearing level. D. also called cyclical unemployment.
If a firm sold $700 worth of goods that cost $800 to produce:
A. aggregate income would still equal GDP. B. aggregate income would no longer equal GDP. C. the firm's loss would not be added to aggregate income. D. aggregate income would be negative.
The largest source of tax revenue for the U.S. federal government is:
A. personal income taxes. B. property taxes. C. corporate income taxes. D. sales and excise taxes.