An example of contractionary fiscal policy would be
a. cutting taxes
b. decreasing government spending
c. increasing production of consumer goods
d. expanding the governments role in regulating private industry
Ans: b. decreasing government spending
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Assume consumer demand for CD-ROMs increases. The result is a(n):
a. increase in derived demand for workers in the CD-ROM industry. b. increase in the marginal revenue product of firms in the CD-ROM industry. c. rightward shift in the market demand for labor curve in the CD-ROM industry. d. all of these. e. none of these.
When there is an increase in the wages the banking industry offers accountants, what happens to the supply of accountants available to other industries?
A) The supply to other industries increases. B) The supply to other industries falls. C) The supply curve for other industries shifts to the right. D) no change