Autoworkers agree to a cut in the nominal wage rate. This event ________ short-run aggregate supply...

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Economics

Autoworkers agree to a cut in the nominal wage rate. This event short-run aggregate supply and long-run aggregatesupply.
A.
does not change; does not change
B.
decreases; does not change;
C.
increases; does not change;
D.
increases; increases
Discretionary fiscal policy
A.
involves only a change in personal income tax rates.
B.
requires action by Parliament.
C.
occurs during recessions but not during expansions.
D.
is triggered by the state of the economy.
If the current account is in surplus and the capital andfinancial account is also in surplus, then the official settlementsaccount balance is
A.
probably close to zero, but could be either negative orpositive.
B.
zero.
C.
negative.
D.
equal to the sum of the current account and the capitalaccount.
Suppose the Bank of Canada follows a fixed exchange rate of $1U.S. per Canadian dollar. If the demand for Canadian dollarstemporarily increases, to maintain the target exchange rate, theBank can
A.
buy Canadian dollars.
B.
violate purchasing power parity.
C.
enforce interest rate parity.
D.
sell Canadian dollars.
A technological advance shifts
A.
both SAS and AD rightward.
B.
both SAS and LAS rightward.
C.
LAS rightward but leaves SAS unchanged.
D.
SAS rightward but leaves LAS unchanged.
Choose the correct statement.
A.
Tax cuts increase aggregate supply and aggregate demand.
B.
Tax cuts strengthen the incentive to work and to invest.
C.
The tax multiplier becomes smaller as time passes.
D.
Both A and B are correct.
A tax on labour income
A.
decreases the supply of labour and has no influence on the realwage rate.
B.
has no effect on the demand for labour.
C.
increases the supply of labour and lowers the real wagerate.
D.
decreases the demand for labour but does not change the realwage rate.
Important factors that change the demand for dollars and henceshift the demand curve for dollars include which of thefollowing?
I.Â Â Â Â interest rates around the world
II.Â Â the current exchange rate
III. the expected future exchange rate
A.
I and II
B.
II
C.
I, II, and III
D.
I and III

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4.2 Ratings (644 Votes)

nswer 1 Autoworkers agree to a cut in the nominal wage rate This event increase shortrun aggregate supply and does not change longrun aggregate supply Workers wont have more bargaining power in the short See Answer

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	A.	does not change; does not change
	B.	decreases; does not change;
	C.	increases; does not change;
	D.	increases; increases

	A.	involves only a change in personal income tax rates.
	B.	requires action by Parliament.
	C.	occurs during recessions but not during expansions.
	D.	is triggered by the state of the economy.

	A.	both SAS and AD rightward.
	B.	both SAS and LAS rightward.
	C.	LAS rightward but leaves SAS unchanged.
	D.	SAS rightward but leaves LAS unchanged.

	A.	Tax cuts increase aggregate supply and aggregate demand.
	B.	Tax cuts strengthen the incentive to work and to invest.
	C.	The tax multiplier becomes smaller as time passes.
	D.	Both A and B are correct.

	A.	decreases the supply of labour and has no influence on the realwage rate.
	B.	has no effect on the demand for labour.
	C.	increases the supply of labour and lowers the real wagerate.
	D.	decreases the demand for labour but does not change the realwage rate.