Higher government deficits ________ the supply of bonds and shift the supply curve to the ________, everything else held constant
A) increase; left
B) increase; right
C) decrease; left
D) decrease; right
B
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Long-run aggregate supply curve in the classical model
A) is a downward sloping line. B) is the level of real GDP corresponding to 100 percent labor force participation. C) is the level of real GDP corresponding to the natural rate of unemployment. D) is determined by the capital stock of the economy, not the labor force.
According to the hypothesis of New Keynesian inflation dynamics, an increase in aggregate demand brings about
A) initial sluggish adjustment of the price level followed by higher inflation later on. B) initial rapid adjustment of the price level followed by lower inflation later on. C) initial sluggish adjustment of real GDP followed by more rapid real GDP growth later on. D) sluggish growth in real GDP both initially and later on.
A country will likely experience an increase in poverty if
A) its population decreases over time. B) its real GDP per person growth rate increases over time. C) it does not receive foreign aid. D) its inflation rate decreases or slows over time. E) its real GDP growth rate decreases or slows over time.
A noncooperative game would refer to a situation in which oligopoly firms
A. are too small to be interdependent. B. are made worse off by their actions. C. do not engage in collusive behavior together. D. behave as a joint monopoly.