Which of the following causes a leftward shift in the short-run aggregate supply curve?
A. an increase of goods prices while nominal incomes are unchanged
B. an increase in nominal incomes (wages and salaries)
C. an increase of full-employment real GDP
D. an increase of personal consumption expenditures while the price level is unchanged
Answer: B
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This chapter discussed the free-rider problem. Consider the following two situations in relation to the free-rider concept
a. The Taft-Hartley Act (1947) allows workers to be employed at a firm without joining the union at their workplace or paying membership fees to the union. This arrangement is known as an open shop. Considering that unions negotiate terms of employment and wages on behalf of all the workers at a firm, why do you think that most unions are opposed to open shops? b. For your business communication class, you are supposed to work on a group assignment in a team of six. You soon realize that a few of your team members do not contribute to the assignment but get the same grade as the rest of the team. If you were the professor, how would you redesign the incentive structure here to fix this problem?
Which of the following statements is true?
A) Because the federal income tax system is progressive, measuring poverty using after-tax incomes results in a higher poverty rate than if poverty is measured using before-tax incomes. B) In the United States, income remaining after federal taxes are paid is more equally distributed than income before taxes. C) If non-cash benefits such as food stamps and rent subsidies were added to the incomes of low-income families, poverty would be eliminated. D) If transfer payments such as Social Security payments to the retired and disabled were excluded from official statistics used to estimate the percentage of people with incomes below the poverty line, the amount of poverty in the United States would be much greater.