A shift in aggregate supply is likely to:
a) Reduce the general price level and reduce national income
b) Reduce the general price level and increase national income
c) Increase the general price level and reduce national income
d) Increase the general price level and increase national income
Answer: b) Reduce the general price level and increase national income
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Suppose we claim that the rapid economic growth in Barylia can be attributed to the culture hypothesis. Which of the following statements is most likely to be concluded from this claim?
A) Barylia must have large stocks of productive natural resources. B) Institutions in Barylia must have been inclusive. C) Barylia must have a huge stock of physical capital. D) The local people in Barylia must be socially inclined to work hard.
A local restaurant offers an "all you can eat" ribs special. You pay $11.95, and then you can eat as many servings as you desire at no additional cost. It would follow that you will stop eating when:
a. your marginal utility (or value) derived from eating another serving is zero. b. your total utility (or value) derived from all of the servings consumed just equals $11.95. c. your marginal utility (or value) derived from another serving equals $11.95. d. it is physically impossible for you to eat any more.
Germany has an absolute advantage in the production of which product?
Answer the following statement(s) true (T) or false (F)
1.Economists who believe that, in the short run, discretionary monetary and fiscal policy can stimulate a recessionary economy with aggregate demand management are known as activists. 2.Expansionary fiscal policy is usually effective at correcting for negative supply shocks. 3.Between 1999 and 2004, inflation was low but housing prices were increasing very rapidly. 4.The use of payment contracts that automatically adjust for changes in inflation is known as indexing. 5.Indexing is an effective method for preventing rises in the inflation rate.