The period of declining growth in real GDP between the peak of the business cycle and the trough is called a(n):
A. recessionary phase.
B. expansionary.
C. recovery phase.
D. stationary phase.
Answer: A
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When the Federal Reserve Banks decide to buy government bonds from banks and the public, the supply of reserves in the federal funds market ________.
A. increases and the federal funds rate increases B. decreases and the federal funds rate decreases C. increases and the federal funds rate decreases D. decreases and the federal funds rate increases
If an individual's demand is elastic and price increases, what happens to total utility (TU), marginal utility (MU), consumer surplus (CS), and total expenditure (TE)?
a. TU increases, MU decreases, CS decreases, and TE decreases b. TU increases, MU increases, CS increases, and TE decreases c. TU decreases, MU increases, CS decreases, and TE increases d. TU decreases, MU decreases, CS decreases, and TE decreases e. TU decreases, MU increases, CS decreases, and TE decreases
Which of the following is likely to result in a higher equilibrium price? a. An increase in both demand and supply
b. A decrease in both demand and supply. c. An increase in demand and a decrease in supply. d. A decrease in demand and an increase in supply.
Externalities can be positive or negative. An example of a positive externality is the third-party benefits from solar energy production such as reduced emissions, cleaner air, and the "warm glow" some people experience from engaging in sustainable activities. An example of a negative externality is the emissions produced from driving gasoline powered motor vehicles such. These emissions have been shown to adversely effect the environment, agriculture, and human productivity, morbidity, and mortality. Which of the following policies would NOT incentivize consumers or producers to internalize external costs of the activities they engage in?
a. Driving subsidies to automobile drivers. b. Production subsidies to manufacturers of solar energy equipment such as photovoltaic cells and batteries. c. Driving taxes to automobile drivers. d. Consumption subsidies to buyers of solar energy equipment such as photovoltaic cells and batteries. e. None of the above.