A reduction in world oil supplies is likely to cause
A) an increase in aggregate demand and a decrease in the equilibrium price level.
B) a decrease in equilibrium price level and an increase in real Gross Domestic Product (GDP).
C) an increase in equilibrium price level and an increase in real Gross Domestic Product (GDP).
D) a reduction in aggregate supply, a rise in the equilibrium price level, and a fall in real Gross Domestic Product (GDP).
D
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From 1997 to 2003, stock prices based on the Standard and Poor's index and the share of investment spending as a component of GDP tended to
A) move in the same direction. B) be unrelated to each other. C) move in opposite directions. D) both remain relatively unchanged.
Why does the short-run aggregate supply curve shift to the right in the long run, following a decrease in aggregate demand?
A) Workers and firms adjust their expectations of wages and prices upward and they push for higher wages and prices. B) Workers and firms adjust their expectations of wages and prices upward and they accept lower wages and prices. C) Workers and firms adjust their expectations of wages and prices downward and they accept lower wages and prices. D) Workers and firms adjust their expectations of wages and prices downward and they push for higher wages and prices.
Suppose interest rates are kept very low for a long time such that there is a spike in the amount of lending. Everything else held constant, this could cause ________ bubble
A) an irrational exuberance B) a credit-driven C) a stock D) a debt-driven
The wage rate found by the intersection of the market demand and supply curves for labor then determines the
A) firm's demand curve for labor. B) firm's supply curve for labor. C) labor's supply curve of labor. D) labor's demand curve for jobs.