Suppose prices in the United States are expected to decline in the future. The effect today is likely to:
A. make the AD curve flatter.
B. make the AD curve steeper.
C. shift the AD curve to the right.
D. shift the AD curve to the left.
Answer: D
You might also like to view...
If real GDP per person in a country equals $40,000 and 60 percent of the population is employed, then average labor productivity equals:
A. $66,667. B. $40,000. C. $60,000. D. $24,000.
Which of the following would be an example or result of expansionary fiscal policy in action?
a. an increase in taxation b. a decrease in government purchases c. a budget deficit d. a budget surplus
The European Union is an example of regional integration.
a. true b. false
The combined impact of the labor pool effect of globalization for low-skilled workers and the market expansion effect of globalization for high-skilled workers is
A. falling income inequality, since one effect helps those with low incomes and the other effect hurts those with high incomes. B. rising income inequality, since one effect helps those with high incomes and the other effect hurts those with low incomes. C. stable income inequality, since one effect helps those with low incomes and the other effect helps those with high incomes. D. stable income inequality, since one effect hurts those with low incomes and the other effect hurts those with high incomes.