A given reduction in government spending will dampen demand-pull inflation by a greater amount when the:
A. Economy's MPS is large
B. Economy's aggregate supply curve is flat
C. Economy's aggregate supply curve is steep
D. Unemployment rate is high
C. Economy's aggregate supply curve is steep
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What is the definition of a discouraged worker?
A) a member of the labor force who is working but is discouraged about his prospects for advancement within the company B) a member of the labor force who is working but is discouraged about the performance of his company within the industry C) a person who has dropped out of the labor force because he is discouraged about his prospects for employment D) an employed member of the labor force who is discouraged about his pay
In the long run, all costs are considered variable
a. True b. False Indicate whether the statement is true or false
If the government decides to spend an extra $5 billion on fighter jets that they would otherwise have spent on road construction, and the MPC = 0.75, what is the effect on AD? a. It has no effect
b. It increases by $5 billion. c. It increases by $15 billion. d. It increases by $20 billion.
Suppose that garbage collectors and landscaping workers have no unions. Now suppose that garbage collectors form unions. What does this do to the labor supply and wages of landscaping workers?
a. Both labor supply and wages increase. b. Labor supply increases, and wages decrease. c. Labor supply decreases, and wages increase. d. Both labor supply and wages increase.