A specific reduction in government spending will dampen demand-pull inflation by a greater amount the:
A. smaller is the economy's MPC.
B. flatter is the economy's aggregate supply curve.
C. smaller is the economy's MPS.
D. less is the economy's built-in stability.
C. smaller is the economy's MPS.
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A consumer's total utility is maximized when the total utility per dollar from all goods is equalized
Indicate whether the statement is true or false
The percentage of world GDP represented by the G7 is ________ and the percentage of world GDP represented by the BRIC economies is ________
A) falling, rising B) falling, falling C) rising, falling D) rising, rising
The price elasticity of demand is important to firms because
a. it explains the relationship between income and demand for the goods they sell b. it shows how price changes affect total expenditures on the goods they sell c. the law of demand suggests that elasticity falls as total expenditures continuously rises d. it helps identify the equilibrium price and quantity in the market e. it relates price to supply
If the US dollar appreciates in the FOREX, US imports and exports are most likely to change in which of the following ways imports; exports
a increase; remain unchanged b. increase; increase c. increase; decrease d. decrease; remain unchanged e. decrease; decrease