In a short-run macroeconomic equilibrium, real GDP exceeds potential GDP. If aggregate demand does not change, then the
A) short-run aggregate supply curve will shift rightward as the money wage rate falls.
B) short-run aggregate supply curve will shift leftward as the money wage rate rises.
C) long-run aggregate supply curve will shift leftward as the money wage rate rises.
D) long-run aggregate supply curve will shift leftward as the money wage rate falls.
B
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Which of the following is a characteristic of an institution?
A) The institutions of a nation are permanent and cannot be changed over time. B) Institutions place constraints on the behavior of economic agents. C) Institutions are determined by individual opinions without considering the government's preference. D) Institutions have very little influence on a nation's economic prosperity.
U.S. unemployment caused by NAFTA over the years from 1994 to 2002:
a. totaled 13% of manufacturing job loss in the United States during that period. b. was not permanent as most workers were re-employed within three years. c. was offset completely by increased product variety imports and lowered prices. d. totaled 13% of manufacturing job loss in the United States during that period was not permanent, as most workers were re employed within three years, and was offset completely by increased product variety imports and lowered prices.