The equilibrium level of national income occurs where
a. Y = C + S
b. C + Ii = C + S
c. Y = C + S + I
d. C + Ii = S
e. Y = C + S + Ii
B
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When NAFTA was approved, Congress attempted to soften the losses suffered by some industries by
A) creating new jobs to hire workers who lost their jobs because of NAFTA. B) setting aside funds to support and retrain workers who lost their jobs because of NAFTA. C) reducing tariffs. D) imposing quotas.
Workers and firms both expect that prices will be 2.5% higher next year than they are this year. As a result
A) workers will be willing to take lower wages next year, but not lower than a 2.5 percent decrease. B) the purchasing power of wages will rise if wages increase by 2.5%. C) the short-run aggregate supply curve will shift to the left as wages increase. D) aggregate demand will increase by 2.5%.