Figure 17-2
Given the situation in graph (1) in Figure 17-2, what movement would be expected in graph (2) from the economy's self-correcting mechanism?
a.
A to B
b.
A to D
c.
C to E
d.
D to C
c
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According to the Monetarists an increase in investment spending initially __________ unemployment so that the price level __________. The resulting __________ in the real money supply __________ spending
A) increases; rises; increase; decreases B) increases; falls; increase; increases C) decreases; falls; decrease; increases D) decreases; rises; decrease; decreases
Income on the horizontal axis at which the vertical distance to the 45-degree line is greater than the vertical distance to the Ep line gives rise to a ________ amount of unplanned inventory investment, and thus ________ pressure on output
A) positive, upward B) positive, downward C) negative, upward D) negative, downward
The institution that monitors and enforces trade agreements and promotes free trade is:
A. the World Bank. B. UNICEF. C. the World Trade Organization. D. the National Alliance Trade Organization.
According to human capital theory, which of the following is not a reason college graduates earn more than those with only a high school degree?
A. College graduates insist on a financial return on their human investments. B. College graduates are made more productive by their greater training. C. Jobs that require more education must pay higher wages to attract enough workers. D. Income effects are higher for jobs requiring more education.