Supply-side economic policies are designed to shift the aggregate supply curve to the left, whereas Keynesian economic policies focus on shifting the aggregate demand curve to the right during recessions and to the left during economic expansions
a. True
b. False
Indicate whether the statement is true or false
False
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The Maastricht treaty was the first step toward
A) having free trade between Russia and China. B) European monetary union. C) gaining credibility for monetary policy. D) reducing the costs of disinflation.
Import quotas on products will increase the price consumers pay for imported products and:
Decrease the volume of exports Decrease the volume of imports Increase the volume of imports Have no effect on the volume of imports or exports
Senator Approxmire opposes a proposal requiring that the monopsonist pay a minimum wage of at least Wmin, stating: "Even if the labor market is monopsonistic, economic theory unambiguously demonstrates that imposing a minimum wage causes employment to fall." Senator Approxmire is:
A. Correct because the law of demand states that as the wage rises, the firm demands less labor
B. Incorrect because the monopsonist would offer a wage of WA, which is higher than Wmin, and maintain its employment at L1
C. Incorrect because the monopsonist's effective MRC curve becomes ABCD, which means that it will choose to hire more workers, from L1 to L2, following the imposition of the minimum wage
D. Correct because the graph indicates that at the wage of Wmin, the monopsonist would not make a profit from hiring labor and so would not hire any at all
A seller's willingness to sell:
A. is the maximum price that a seller is willing to accept in exchange for a good or service. B. is his or her reserved minimum bid-price. C. is the minimum price that a seller is willing to accept in exchange for a good or service. D. must always equal the buyer's willingness to buy.