Policymakers who control monetary and fiscal policy and want to offset the effects on output of an economic contraction caused by a shift in aggregate supply could use policy to shift
a. aggregate supply to the right.
b. aggregate supply to the left.
c. aggregate demand to the right.
d. aggregate demand to the left.
c
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Labor unions create barriers to entry in certain work settings
a. True b. False Indicate whether the statement is true or false
A price elasticity of infinity corresponds to a demand curve that is:
A. vertical. B. horizontal. C. either vertical or horizontal. D. downward sloping with a slope always equal to 1.
In the CPI market basket, the category which has the largest weight is
A. transportation. B. medical care. C. food and beverages. D. housing.
In the circular flow model, which of the following owns the factors of production?
A) only federal, state, and local governments B) only households C) only firms D) both firms and households E) firms, households, and all levels of government