Using the information contained in Figure 4-7 above, the initial equilibrium Y is 3500. If there is 500 of new fiscal stimulus and a constant money supply, Y will increase to ________ and the interest rate will ________
A) 4000; remain constant
B) 4000; rise to 10%
C) 4500; rise to 12.5%
D) 5500; remain constant
C
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Marv Pilson has $50 worth of groceries in a shopping cart at his local Shop 'n Save. Assume that the marginal utility per dollar of the liter bottles of soft drink in Marv's cart equals 50
The marginal utility per dollar of the boxes of cereal in Marv's cart equals 20. Marv has only $50 to spend, but has not yet paid for his groceries. How can Marv increase his total utility without spending more than $50? A) Marv should buy fewer boxes of cereal and fewer bottles of soft drink. He can then spend more on other items. B) Marv should substitute his favorite soft drink or the cereal in his cart for generic brands that have lower prices. C) Marv should buy more boxes of cereal and fewer bottles of soft drink. D) Marv should buy fewer boxes of cereal and more bottles of soft drink.
Refer to Table 26-3. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if the Federal Reserve does not use monetary policy
If the Fed uses monetary policy successfully to keep real GDP at its potential level in 2017, which of the following will be lower than if the Fed had taken no action? A) real GDP and the inflation rate B) real GDP and potential GDP C) potential GDP and the inflation rate D) real GDP and the unemployment rate
Other things constant, if a labor union is able to successfully increase the wages of autoworkers, there will be
a. an increase in the supply of automobiles causing the price of automobiles to fall. b. an increase in the supply of automobiles causing the price of automobiles to rise. c. a decrease in the supply of automobiles causing the price of automobiles to fall. d. a decrease in the supply of automobiles causing the price of automobiles to rise.