Answer the following statements true (T) or false (F)
1) An increase in imports (independent of a change in the U.S. price level) will increase both U.S. aggregate supply and U.S. aggregate demand.
2) An increase in business excise taxes will shift the aggregate supply curve leftward.
3) A decrease in per-unit production costs will shift the aggregate supply curve leftward.
4) The aggregate supply curve (short run) becomes steeper as the economy moves rightward
and upward along it.
5) Cost-push inflation is depicted as a rightward shift of the aggregate demand curve along an upsloping aggregate supply curve.
1) F
2) T
3) F
4) T
5) F
You might also like to view...
Refer to Figure 19-10. Under the Bretton Woods System of exchange rates, if the par exchange rate was $2 per pound in the figure above, and equilibrium persisted at $3, then this was evidence of ________ and the IMF would allow a ________ in the
exchange rate. A) fundamental disequilibrium; revaluation B) fundamental disequilibrium; devaluation C) fundamental overvaluation; revaluation D) fundamental overvaluation; devaluation
Satellite radio and MP3 devices are both new forms of competition for over-the-air radio broadcasting
Indicate whether the statement is true or false