Suppose workers become pessimistic about their future employment, which causes them to save more and spend less. If the economy is on the intermediate range of the aggregate supply curve, then:
a. both real GDP and the price level will fall.
b. real GDP will fall and the price level will rise.
c. real GDP will rise and the price level will fall.
d. both real GDP and the price level will rise.
a
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Maria and Jose installed a "nanny-camera" in their home so that they can view how the nanny is interacting with their children while they are at work. What type of problem are they trying to combat?
When the money market is drawn with the value of money on the vertical axis, an increase in the money supply shifts the money supply curve to the
a. right, lowering the price level. b. right, raising the price level. c. left, raising the price level. d. left, lowering the price level.
The labor-supply and labor-demand curves for the market intersect:
A. at the equilibrium wage. B. at the number of unemployed people in the market. C. above equilibrium price. D. All of these statements are true.
Regulatory capture is said to have occurred when which of the following is true?
A. Rules and enforcement in an industry are heavily influenced by the industry being regulated. B. One firm controls an entire market, having captured customers away from other firms. C. Government imposes excessive regulations in an industry, resulting in inefficiencies. D. Consumers make all the rules for an industry, forcing firms into inefficient production methods.