Which of the following changes shifts the long-run aggregate supply curve to the right?
A) A demographic change that increases the labor supply
B) A decrease in the demand for labor
C) An increase in consumer confidence
D) A decrease in taxes (assuming Ricardian equivalence doesn't hold)
A
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Refer to the figure above. When the real exchange rate is above R*:
A) net exports are zero. B) net exports are positive. C) net exports are negative. D) net exports can be positive or negative depending on the value of R*.
What are most goods in the economy?
a) public goods b) natural monopolies c) private goods d) common resources
The “cost disease of personal services” phenomenon helps explain why medical care has become so expensive.
Answer the following statement true (T) or false (F)
The economy needs some unemployment to operate efficiently, because without it:
A. firms will find it difficult to recruit workers, leading to increased wages and prices. B. firms will find it difficult to recruit workers, leading to reduced wages and prices. C. workers will find it difficult to find a job, leading to increased wages and prices. D. workers will find it difficult to find a job, leading to reduced wages and prices.