Refer to the information provided in Figure 27.3 below to answer the question(s) that follow.
Figure 27.3Refer to Figure 27.3. Cost-push inflation occurs if
A. the aggregate supply curve shifts from AS1 to AS2.
B. the aggregate supply curve shifts from AS1 to AS0.
C. the economy moves from Point A to Point B on aggregate supply curve AS1.
D. the economy moves from Point A to Point C on the aggregate supply curve AS1.
Answer: A
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When smaller political groups wish to have influence in a government with pluralistic voting, they will:
A. drop from races, and consolidate with larger parties. B. stay in political races, in the hopes of swaying the vote away from the candidate the majority favors. C. stay in political races, in the hopes of a miracle. D. drop from races, and campaign instead to sway the vote away from the candidate the majority favors.
What are entitlements? How has the increase in the number of entitlements changed the budgetary process?
What will be an ideal response?
An example of moral hazard is
a. workers working diligently even though the boss is not looking b. health care insured dieting and exercising c. drivers of safer cars turning their phones off before driving d. borrowers investing their loan proceeds differently than the bank requires
A negative demand shock would lead to a decline in both the price level and output in the short run
a. True b. False