Whenever a society forgoes current consumption to invest in capital goods,
A) the less the society can consume next year.
B) the easier it will be for the society to consume less in the future because people will become accustomed to less.
C) the more the society can consume in the future.
D) the less capital the society can produce in the future.
C) the more the society can consume in the future.
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During 2008 and 2009, the debt to GDP ratio in the United States
A) remained relatively unchanged, as it has since the mid 1970s. B) fell to its lowest level since World War I. C) is the highest it has been since the founding of the country. D) rose to its highest level since World War II.
Though the theory of purchasing power parity applies in the long run, it is unlikely to apply in the short run, because ________
A) foreigners purchase only tradable goods B) countries do not produce identical goods C) prices are sticky D) price levels change quickly
Since producers must be compensated for the rising opportunity cost that accompanies increases in output,
a. the law of demand applies to most markets b. supply curves usually slope downward c. demand curves usually slope downward d. supply curves usually slope upward e. technical inefficiency would not exist in the long run
In the short run, if the Fed undertakes expansionary monetary policy, the effect will be to shift the:
A. AD curve in to the left. B. SAS curve down. C. SAS curve up. D. AD curve out to the right.