What are the primary effects of cost-push inflation?
A. It raises real output but redistributes a decreased level of real income.
B. It raises real output and redistributes an increased level of real income.
C. It reduces real output and redistributes a decreased level of real income.
D. It reduces real output but redistributes an increased level of real income.
Answer: C
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Empirical tests of the theory of comparative advantage have provided
A) strong support for both the Ricardian and Heckscher-Ohlin models. B) mixed support for the Ricardian model and strong support for the Heckscher-Ohlin model. C) strong support for the Ricardian model and mixed support for the Heckscher-Ohlin model. D) mixed support for both Ricardian and Heckscher-Ohlin models. E) no support for either the Ricardian or the Heckscher-Ohlin models.
In the context of growth, the goal of stabilization policy once per capita output is equal to potential per capita output is to
A) insure that the percentage change in per capita output and potential per capita output over time are equal. B) raise the growth rate of potential per capita output above that of per capita output. C) raise the growth rate of per capita output above that of potential per capita output. D) None of the above is correct.
]Which of the following would not cause the AD curve to shift?
a. A change in the money supply b. The public's expectations of a fall in the interest rate c. A change in aggregate expenditure caused by a change in the price level d. A change in fiscal policy e. A change in autonomous consumption spending
In a particular year, if the price level rises by 4 percent and the nominal wage of workers rises by 6 percent, we can conclude that the real wage has:
What will be an ideal response?