The open economy effect refers to the fact that
A. the slope of the aggregate demand curve is partially explained by the reduction in the desire to buy fewer U.S. goods by U.S. residents and foreign residents as a result of a higher price level.
B. the position and shape of the long run aggregate supply curve is partially due to the fact that we import goods.
C. the aggregate supply curve shifts when the economy grows.
D. the immigration policies of the United States are disruptive to labor markets.
Answer: A
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An exogenous rise in government expenditures will have the same effect on GDP as an equal rise in either autonomous ________ or autonomous ________
A) consumption; investment B) taxes; consumption C) savings; investment D) taxes; investment
An example of peak pricing is charging
a. more for long-distance phone calls in the daytime. b. less for electricity at night. c. more for public transportation in rush hours. d. All of the above are true.