Everything else held constant, a decrease in government spending will cause the IS curve to shift to the ________ and aggregate demand will ________
A) right; increase
B) right; decrease
C) left; increase
D) left; decrease
D
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The price of a pollution right is
a. determined by consumers b. determined by government c. a user charge d. determined by supply and demand e. a subsidy
Which of the following is true?
a. Competitive forces are present even in markets with high barriers to entry. b. Quality competition is an unimportant element of the competitive process. c. Profitability and high prices discourage technological change and the development of substitute products. d. Government regulations have substantially increased the quality of American manufacturing products in recent years.
Which of the effects listed below increases the quantity of goods and services demanded when the price level falls and decreases the quantity of goods and services demanded when the price level rises?
a. the wealth effect b. the interest-rate effect c. the exchange-rate effect d. All of the above are correct.
Real wages in the United States are:
A. the highest in the world. B. relatively high, but not as high as in some other industrially advanced nations. C. much higher than output per worker. D. higher than nominal wages.