Viceroy Vacations is deciding on how to price its vacation packages. Which of the following strategies would you suggest?
a. Price the flight, hotel and car separately
b. Advertise it as an all-inclusive vacation
c. Give them away as free vacations to everyone
d. Close down your company. No one goes on vacations anymore
b
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If cyclical unemployment is eliminated
a. GDP is at its full-employment level b. GDP is at its equilibrium level c. the loanable funds market is in equilibrium d. the aggregate supply curve shifts upward e. potential output has increased
Suppose there is a $20 million increase in government spending. We know that this increase in government spending will cause which of the following to occur?
A. equilibrium real GDP will increase by exactly $20 million. B. an increase in equilibrium real GDP and no change in the multiplier. C. an increase in equilibrium real GDP and a reduction in the multiplier. D. an increase in equilibrium real GDP and an increase in the multiplier.
The above table shows marginal costs and marginal benefits of clean air in a particular industrial area. In the table, when the quantity of clean air is at 25 percent
A. the marginal benefit of clean air exceeds the marginal cost. B. the quantity of clean air is optimal. C. the quantity of polluted air is 25 percent. D. the marginal benefit of clean air is less than the marginal cost.
Which of the following is NOT an advantage of inflation targeting?
A) reduction of the time-inconsistency problem B) increased monetary policy transparency C) There is an immediate signal on the achievement of the target. D) consistency with democratic principles