Assume the central bank decides to raise the discount rate. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real credit market with supply of real credit shifting to the right.
b. Start the analysis in the real goods market with aggregate demand shifting to the left.
c. Start the analysis in the real credit market with demand for real credit shifting to the left.
d. Start the analysis in the real credit market with demand for real credit shifting to the right.
e. Start the analysis in the real credit market with supply of real credit shifting to the left.
.E
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One basic way to boost the nation's growth rate is to
a. increase wages paid to labor. b. slow the rate of technical progress. c. reduce the population growth rate. d. accumulate more capital
An advance in technology in the production of good X causes
A) a rightward shift in the supply curve for good X. B) a leftward shift in the supply curve for good X. C) the supply curve for good X to change from upward sloping to vertical. D) the supply curve for good X to change from vertical to upward sloping.