According to one In the News article, "Defense Cuts Kill Jobs," a decrease in government spending has contributed to the sluggish economy. This would imply that
A. The aggregate supply curve has shifted to the right.
B. Injections into the circular flow have increased.
C. The aggregate demand curve has shifted to the right.
D. The aggregate demand curve has shifted to the left.
Answer: D
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In the RBC model, an adverse supply shock causes the decrease in natural real GDP to be minimized when the labor supply curve is
A) downward sloping and extremely flat. B) upward-sloping and extremely flat. C) upward-sloping and extremely steep. D) vertical.
When a nation's currency suddenly loses value, the ________ may step in to buy the afflicted currency
A) World Bank B) International Monetary Fund C) Federal Reserve Bank D) United Nations
If the price of apples falls and apples and oranges are substitutes, we would expect:
a. The quantity of apples demanded to increase and the demand for oranges to increase. b. The quantity of oranges demanded to decrease and the demand for apples to increase. c. The quantity of apples demanded to increase and the demand for oranges to decrease. d. The quantity of oranges demanded to decrease and the demand for apples to decrease.
Which of the following is income, as defined in economics?
(a) Salaries received by members of the Judiciary; (b) Scholarships awarded to high performance Leaving Certificate students; (c) Unemployment benefits paid to long term unemployed persons; (d) Both (a) and (b).