Suppose that the money wage in the economy increases by 8 percent. As a result the
A) long-run aggregate supply will decrease.
B) long-run and the short-run aggregate supply both decrease.
C) short-run aggregate supply will decrease.
D) long-run aggregate supply will increase and the short-run aggregate supply will decrease.
C
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It is assumed that the marginal benefit of air cleanliness falls with the degree of cleanliness since
A) the marginal cost of air cleanliness increases. B) air cleanliness is a public good and not a private good. C) the marginal utility of air cleanliness falls with the degree of cleanliness. D) the generation of pollution should be considered an externality.
Concern about the ability of independent foreign firms to maintain product quality
A. is an inherent disadvantage faced by the multinationals. B. makes FDI preferable to licensing firms in the foreign markets. C. makes licensing firms in the foreign markets preferable to foreign direct investment (FDI). D. often results in the formation of a license agreement between a foreign firm and a multinational enterprise.
Refer to the above figure. A price ceiling has been set at P1, and a black market has opened. The equilibrium black market quantity will be
A. Q2. B. between Q1 and Q3. C. above Q3. D. below Q1.
The problem causing most recessions is too little
A) money (currency plus checking accounts). B) spending. C) unemployment. D) taxes.