If an increase in consumer incomes causes the demand curve for product Q to shift to the right, then it can be said that product Q is a(n):
a. Inferior good
b. Normal good
c. Luxury good
d. Inexpensive good
b. Normal good
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If an asymmetry of information is removed and laborers' preferences change against employment in a labor market, it would __________ employment and __________ the wage at the equilibrium in the market.
A. increase; raise B. increase; lower C. decrease; raise D. decrease; lower
Changes in which of the following will not cause the SRAS curve to shift?
A) the wage rate B) prices of nonlabor inputs C) the price level D) productivity E) All of the above will cause the SRAS curve to shift.
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y2. C. P3 and Y1. D. P2 and Y3.
A large underground economy results in an:
A. understated GDP. B. overstated GDP. C. understated GDP price index. D. overstated GDP price index.