if import restrictions prohibit foreigners from selling various goods and services in the U.S Market
What will be an ideal response?
foreigners will have fewer U.S dollars with which to buy U.S goods and services
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Workers and firms both expect that prices will be 2.5% higher next year than they are this year. As a result
A) workers will be willing to take lower wages next year, but not lower than a 2.5 percent decrease. B) aggregate demand will increase by 2.5%. C) the purchasing power of wages will rise if wages increase by 2.5%. D) the short-run aggregate supply curve will shift to the left as wages increase.
Which of the following are effects of an increase in government spending financed by a tax increase?
a. the tax increase reduces consumption; the change in the interest rate reduces residential construction b. the tax increase reduces consumption; the change in the interest rate raises residential construction c. the tax increase raises consumption; the change in the interest rate reduces residential construction d. the tax increase raises consumption; the change in the interest rate reduces residential construction
The fact that international specialization and trade based on comparative advantage can increase world output is demonstrated by the reality that:
A. the production possibilities curves of any two nations are identical. B. a nation' production possibilities and trading possibilities lines coincide. C. a nation's trading possibilities line lies to the right of its production possibilities line. D. a nation's production possibilities line lies to the right of its trading possibilities line.
Medicare and Social Security are similar in the following respects, except:
A. They are both "pay-as-you-go" plans B. Their trust funds are both projected to be depleted within the next 30 years C. Contributions are collected from both employers and employees D. They are both intended to benefit older current workers