Suppose the economy is at point B. If a recession in another country decreases exports, to what point might economy move in the short run?
A) It stays at point B.
B) It shifts to a point such as A.
C) It shifts to a point such as C.
D) None of the above answers are correct because it is the SAS curve that shifts, not the AD curve.
B
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Which of the following will cause the date that the Social Security trust fund runs out of money to be pushed further into the future?
A) a decrease in the rate of real GDP growth B) an increase in the population growth rate C) a decrease in the growth of the real wage D) all of the above
Screening is the action
A) taken by an informed person to determine the information possessed by uninformed people. B) taken by an uninformed person to determine the information possessed by informed people. C) taken to offset signaling. D) that is cheaper and more effective than cheap talk.