A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only.
B. aggregate demand curve only.
C. aggregate demand curve, and the short-run aggregate supply curve would shift in response.
D. short-run aggregate supply curve and the long-run aggregate supply curve.
Answer: A
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In calculating the unemployment rate, part-time workers are
A. counted as unemployed because they are not working full-time. B. treated the same as "discouraged" workers who are not actively seeking employment. C. used to determine the size of the labor force, but not the unemployment rate. D. counted as employed because they are receiving payment for work.
Goods that are not rival in consumption, but are excludable are:
A. a common resource. B. a private good. C. a public good. D. an artificially scarce good.
Which of the following is a partially valid economic argument for restricting free trade?
a. Restrictions on foreign trade will increase employment and permanently reduce unemployment. b. Infant industries may need temporary protection to develop and gain productive efficiency. c. A nation needs to protect its national defense; hence, it should restrict some products that threaten an industry considered vital to its defense. d. Both b and c are correct.
Which of the following would we not expect if government policy moved the economy up along a given short-run Phillips curve?
a. Teresa reads in the newspaper that the central bank recently raised the money supply. b. Jackie gets fewer job offers. c. Miguel makes larger increases in the prices at his health food store. d. Julie's nominal wage increase is larger.