How do we show the short-run impact of an increase in spending growth in our aggregate demand and aggregate supply model?
A. The AD curve shifts to the right, and inflation and real growth both decrease along the SRAS curve.
B. The AD curve shifts to the right, and inflation and real growth both increase along the SRAS curve.
C. The AD curve shifts to the left, and inflation and real growth both decrease along the SRAS curve.
D. The AD curve shifts to the left, and inflation and real growth both increase along the SRAS curve.
Ans: D. The AD curve shifts to the left, and inflation and real growth both increase along the SRAS curve.
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Figure 8.7 shows the market for a successful price-fixing arrangement (cartel) between two identical firms. When the two firms act like one and charge the same price, the market price will be ________ and each firm will produce and sell a quantity of ________.
A. $10; 200 B. $10; 100 C. $5; 500 D. $5; 250
The production possibilities curve (PPC) illustrates economic growth by a(n)
A. inward shift of the PPC. B. bowed-out shape of the PPC. C. outward shift of the PPC. D. movement along the PPC.
How does inflation affect people’s standards of living and savings?
What will be an ideal response?
In late-2008, Congress rejected a proposed trade pact with Chile tied to
A. a bailout of the U.S. tobacco industry. B. an overhaul of the U.S. Postal Service. C. a rescue package for the U.S. auto industry. D. negotiations with Colombian drug lords.