Macroeconomic equilibrium occurs when the quantity of output _____ equals the quantity of output _____.
Fill in the blank(s) with the appropriate word(s).
demanded; supplied
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In the circular flow model, which of the following is on the buying side in the goods market?
i. firms ii. households iii. federal, state, and local governments A) i only B) ii only C) iii only D) i and ii E) ii and iii
Refer to the scenario above. If Frank discounts delayed utilities with a weight of 9/10, then which of the following statements is true?
A) He will eat both hotdogs and ice cream. B) He will eat hotdogs but avoid ice cream. C) He will eat ice cream but avoid hotdogs. D) He will avoid consuming both hotdogs and ice cream.
If inflation expectations rise, the short-run Phillips curve shifts
a. right, so that at any inflation rate unemployment is higher in the short run than before. b. left, so that at any inflation rate unemployment is higher in the short run than before. c. right, so that at any inflation rate unemployment is lower in the short run than before. d. left, so that at any inflation rate unemployment is lower in the short run than before.
Stopping inflation
A. may be costly, if the inflation is stopped by inducing a recession. B. will have no benefits or costs associated with it. C. may be costly, but the benefits of stopping inflation will always outweigh the costs of such actions. D. can only benefit the economy, because the price level will be reduced.