Risk management in command economies
What will be an ideal response?
tends to be done poorly because decision makers are insulated from the risk of making a poor decision.
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Assuming that the government cannot act immediately and the multiplier takes effect, ultimately creating an expansionary gap of $10 billion dollars. To close this gap, government purchases must be:
A. increased by more than $10 billion. B. increased by $10 billion. C. decreased by less than $10 billion. D. decreased by $10 billion.
The long-run aggregate supply curve would shift left if the amount of labor available
a. increased or Congress made a substantial increase in the minimum wage. b. decreased or Congress abolished the minimum wage. c. increased or Congress abolished the minimum wage. d. decreased or Congress made a substantial increase in the minimum wage.
Wages are sticky when:
What will be an ideal response?
Refer to the diagram. Suppose that aggregate demand increased from AD 1 to AD 2 . For the price level to stay constant:
A. the aggregate supply curve would have to shift rightward.
B. the aggregate supply curve would have to shift leftward.
C. real domestic output would have to remain constant.
D. the aggregate supply curve would have to be vertical.