Refer to Figure 16-1. Suppose the economy is in short-run equilibrium below potential GDP and no fiscal or monetary policy is pursued. Using the static AD-AS model in the figure above, this would be depicted as a movement from

A) A to E. B) A to B. C) B to A. D) B to C. E) C to B.


A

Economics

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A bank creates money

A) never since it only lends out money it owns. B) when it makes loans. C) when it prints bank notes. D) when it pays out reserves.

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If the Pareto criteria are taken literally, _____ percent of United States residents must agree for a policy change to be a move towards efficiency

a. 25 b. 50 c. 75 d. 100

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One of the key factors in raising people in low-income countries out of the worst kind of poverty is whether they can

a. receive unemployment compensation. b. attend college or vocational school. c. make a connection to a somewhat regular wage-paying job. d. be protected by labor laws and unions.

Economics

In theory, liability rules for pollution are designed to have the same effect as taxing a polluter.

Answer the following statement true (T) or false (F)

Economics