We observe the duration of unemployment rising and wage rates falling. It is likely that
A. aggregate supply has increased.
B. summer has arrived.
C. the government has initiated expansionary fiscal policy but the policies haven't taken effect yet.
D. aggregate demand has decreased.
Answer: D
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Refer to Figure 35-1. What is measured along the horizontal axis of the left-hand graph?
A) the wage rate B) the inflation rate C) employment D) output
Which of the following statements is true?
A) An individual with property rights is likely to have lower productivity than an individual without property rights. B) Inclusive institutions do not support the provision of property rights to society and hence foster economic prosperity. C) Productivity of individuals is likely to be independent of the availability of property rights. D) An individual with property rights is likely to have higher productivity than an individual without property rights.
Discuss the short-run and long-run views of PPP. Make sure that you explain the underlying adjustment mechanism and theoretical reasoning for each view when answering the question
Which view, do you think, is more likely to represent the real world?
Proponents of deficit reduction argue that the principal effect will be an
a. outward shift of the aggregate supply curve. b. inward shift of the aggregate supply curve. c. outward shift of the aggregate demand curve. d. inward shift of the aggregate demand curve.