For this question, assume that workers expectations of the price level and productivity are accurate. Now suppose that the economy experiences an increase in productivity. Which of the following will occur in the medium run?
A) no change in unemployment
B) an increase in unemployment
C) a reduction in unemployment
D) no change in the natural level of output if the unemployment rate does not change
E) none of the above
A
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What will be the principal and most immediate effect on the supply or demand of raw cotton grown in the United States if a low-cost process for making cotton cloth wrinkle-free is developed?
A) Decrease in demand B) Decrease in supply C) Increase in demand D) Increase in supply
In 1930, the U.S. government attempted to help domestic firms that were harmed by the Great Depression by passing the Smoot-Hawley Tariff. In response to this tariff, other countries ________ and international trade ________
A) lowered their tariffs; thrived B) raised their tariffs; collapsed C) doubled their tariffs; became unrestricted D) eliminated tariffs; began to grow outside of the United States
According to the quantity theory of money, if there are fewer dollars available to spend on the same number of goods and services, then:
A. the price level will fall. B. the price level will rise. C. output will decrease. D. output will increase.
Refer to Table 4.1. Mike's preferences are consistent with the Ranking Principle because:
A. the two goods are perfect complements.
B. there are no empty cells.
C. in each column, the choices at the top are ranked lower than the choices at the bottom.
D. in each column, the choices at the top are ranked higher than the choices at the bottom.