Which of the following results in higher inflation and higher unemployment in the short run?
a. a more expansionary monetary policy
b. a more contractionary monetary policy
c. a decrease in the minimum wage
d. an adverse supply shock such as an increase in the price of oil
d
You might also like to view...
Studies show that the largest negative impact of illegal immigrants is on:
A. The wages of native-born workers B. The average wage in the U.S. C. Employment opportunities of native-born workers D. The wages of previous immigrants
If a university expects $160,000 in ticket revenue from five home football games and $180,000 in ticket revenue if it adds a sixth game, the
A) marginal revenue of the sixth game is $20,000, B) marginal revenue of the sixth game is $30,000. C) sixth game will cost more than each of the previous five games. D) university should add a sixth game only if the average cost of a game is less than $30,000.
Higher resource costs shift the
A) long-run aggregate supply curve leftward, decreasing real GDP and increasing potential GDP. B) short-run aggregate supply curve leftward, raising the price level and decreasing potential GDP. C) short-run aggregate supply curve leftward, raising the price level and decreasing real GDP so it is less than potential GDP. D) short-run aggregate supply curve rightward, raising the price level and decreasing real GDP so it is less than potential GDP.
Firms in perfectly competitive markets who wish to maximize profits should produce:
A. less as long as marginal cost is less than marginal revenue. B. more as long as marginal cost is greater than marginal revenue. C. at the level where marginal cost equals marginal revenue. D. All of these are true.