Which of the following will contribute to accelerated growth for the U.S. economy?
A. A decrease in factor mobility.
B. A decrease in tax credits for research and development.
C. A decrease in government involvement in copyright laws.
D. Increased use of outsourcing for inputs and increased use of comparative advantage for trade in final goods and services.
Answer: D
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When production costs fall,
a) the aggregate-demand curve shifts to the right. b) the short-run aggregate-supply curve shifts to the right. c) the short-run aggregate-supply curve shifts to the left. d) the aggregate-demand curve shifts to the left.
The Federal Reserve will engage in a matched sale-purchase transaction when it wants to ________ reserves ________ in the banking system
A) increase; permanently B) increase; temporarily C) decrease; temporarily D) decrease; permanently