Long-run economic growth policies focus on:
A. Shifting the aggregate demand curve to the left.
B. Moving the economy along the production possibilities curve.
C. Shifting the production possibilities curve outward.
D. Moving the economy onto the production possibilities curve.
C. Shifting the production possibilities curve outward.
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The most direct way in which money eliminates the need for a double coincidence of wants is through its use as a
A) medium of exchange. B) standard of deferred payment. C) store of value. D) unit of account.
If the government wanted a tax to not burden consumers much, it would want to tax an industry with:
a. elastic supply and demand curves. b. inelastic supply and demand curves. c. inelastic supply and elastic demand. d. elastic supply and inelastic demand.
The figure below shows a shift in the production-possibility curve of a country from AB to AC. Here, S1 and C1 are the initial production and consumption points, respectively. S2 and C2 are the final production and consumption points, respectively. Which of the following is illustrated by this figure?
A. A small country experiencing a balanced growth B. A large country experiencing growth biased toward wheat production C. A large country experiencing a balanced growth D. A small country experiencing growth biased toward cloth production
What happens in the short run in the Keynesian model to the exchange rate and net exports in each of the following cases?(a)The foreign real interest rate falls.(b)Foreign output rises.(c)Foreign demand for domestic goods rises.(d)Domestic output rises.(e)The domestic real interest rate falls.
What will be an ideal response?