Which of the following will cause an increase in unemployment and inflation at the same time?
A. A leftward shift of aggregate demand.
B. A rightward shift of aggregate supply.
C. A leftward shift of aggregate supply.
D. A rightward shift of aggregate demand.
Answer: C
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Figure 5-24
Given the demand curve in Figure 5-24, explain how consumer's surplus is calculated.
If resources A and B are complementary and employed in fixed proportions:
A. a change in the price of A will have no effect on the quantity of B employed. B. an increase in the price of A may either increase or decrease the demand for B. C. an increase in the price of A will increase the demand for B. D. an increase in the price of A will decrease the demand for B.
By saying that the equation of exchange is an accounting identity, we mean that
A. it explains the effect of questionable accounting practices on macroeconomic performance. B. it identifies the key national income accounts. C. it is always true. D. it is useful for accountants, but not for economists.
Which of the following is likely a variable cost?
A. Hourly wages B. Fuel C. Raw materials D. All of these choices are variable costs.