The long-run adjustment to a negative supply shock results in
A) the price level rising.
B) the short-run aggregate supply curve shifting to the right.
C) workers being willing to accept higher wages.
D) unemployment rising.
B
Economics
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When the government chooses to spend the tax dollars that it collects on homeland security, its choice
A) involves a tradeoff of other goods and services such as education for more homeland security. B) illustrates that scarcity does not always exist. C) involves no tradeoff because the defense is necessary. D) primarily affects who gets the goods and services produced.
Economics
If the natural rate of unemployment equals 8 percent and the actual rate of unemployment equals 6 percent, then cyclical unemployment equals:
A. 10 percent. B. 2 percent. C. -1 percent. D. -2 percent.
Economics