A change in tastes for U.S. produced goods will
A) shift both the aggregate demand curve and the long-run aggregate supply curve.
B) shift the aggregate demand curve.
C) shift the short-run aggregate supply curve.
D) shift the long-run aggregate supply curve.
B
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What are the preconditions for labor productivity growth?
What will be an ideal response?
What is the shape of the labor supply curve implied by the following statements?
a. "I'm sorry, kids, but now that I'm earning more, I just can't afford to come home early in the afternoon, so I won't be here when you get home from school." b. "They can pay me a lot or they can pay me a little. I'll still put in my 8 hours a day." c. "Now that I have received a salary increase, I am going to work 36 hours instead of 40 hours a week"
According to Adam Smith, what is the primary source of a nation's wealth?
a. The amount of gold and silver in the government's possession. b. A spirit of cooperation in which people share according to their means. c. Strong central planning authorities. d. The people's ability to produce products and trade in free markets.
According to non-Keynesians, how will an increase in government spending financed by borrowing during a recession affect recovery?
a. Higher future taxes and interest rates will be required to finance the larger debt and this will weaken the recovery. b. Repayment of the debt can always be shifted to the future, making it possible to keep tax rates low and thereby strengthen the recovery. c. Higher interest payments will increase future government spending, and thereby promote a stronger the recovery. d. The increase in government spending will exert a multiplier effect on the economy, leading to a stronger recovery.