Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point A to Point D. This could be explained by
A. an increase in economic growth.
B. a change in society's preferences for motorcycles versus hybrid cars.
C. a reduction in unemployment.
D. an improvement in technology.
Answer: B
You might also like to view...
If the government required car makers to install more costly and effective emission control devices on cars, it will lead to:
a. a higher price of cars and a larger quantity of cars sold. b. a higher price of cars and a smaller quantity of cars sold. c. a lower price of cars and a larger quantity of cars sold. d. a lower price of cars and a smaller quantity of cars sold.
When the minimum wage is set above the equilibrium market wage,
a. there will be a shortage of labor at the minimum wage b. it will have no effect on the quantity of labor employed c. the unemployment rate will rise d. the quality of the labor force will increase e. the unemployment rate will fall
A tax cut shifts the aggregate demand curve the farthest if
a. the MPC is large and if the tax cut is permanent. b. the MPC is large and if the tax cut is temporary. c. the MPC is small and if the tax cut is permanent. d. the MPC is small and if the tax cut is temporary.
Assume an economy experiences, for a given period, a 4% increase in output and a 4% increase in productivity. Given this information, we know that which of the following occurred for this economy during this period?
A) The unemployment rate increased during this period. B) The unemployment rate decreased during this period. C) The unemployment rate did not change during this period. D) The effects on the unemployment rate are ambiguous. E) none of the above