Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward
B. Short-run aggregate supply shifting downward
C. Aggregate demand shifting rightward
D. Aggregate demand shifting leftward
Answer: B
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Suppose Chevrolet produced 90,000 Camaros in the United States in 2012 and during 2012 sold 69,000 to U.S. customers and exported 14,000 to foreign buyers. How many Camaros would the BEA count as investment spending by Chevrolet in 2012?
A) 7,000 B) 21,000 C) 76,000 D) 90,000
In the late 1990s, the more than expected increases in tax revenues were the result of
A. rapid economic growth. B. rapid increases in the national debt. C. rising rates of inflation, and therefore, nominal incomes. D. rising balance of trade surpluses and the import duties they generated.
Assume the price of Levi jeans increases. As a result, you decrease the quantity of Levi jeans purchased each month and purchase more Lee jeans. This is an example of the:
a. consumption effect. b. utility effect. c. income effect. d. substitution effect.
A person who voluntarily quits his/her job in New York and expects to get a similar job in Los Angeles is an example of:
a. structural unemployment. b. cyclical unemployment. c. durational unemployment. d. frictional unemployment.