According to mainstream macroeconomists, U.S. macro instability has resulted from:
A. investment "booms" and "busts" and, occasionally, adverse aggregate supply shocks.
B. adherence by the Fed to a monetary rule.
C. government's attempts to balance its budget.
D. wide fluctuations in net exports.
A. investment "booms" and "busts" and, occasionally, adverse aggregate supply shocks.
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Real GDP per person in Richland is $20,000, while real GDP per person in Poorland is $10,000. However, Richland's real GDP per person is growing at 1 percent per year, and Poorland's real GDP per person is growing at 3 percent per year. After 50 years, real GDP per person in Richland minus real GDP in Poorland is:
A. positive but less than $10,000. B. zero. C. negative. D. positive and greater than $10,000.
The ________ surplus will rise if the price of the good ________.
A. producer; falls B. consumer; rises C. total; rises D. consumer; falls
Refer to the graph below. The slope of the tangent line at various points on the curve as the value of X increases (i.e., as we move to the right along the curve) is: (confusing)
A. Increasing in algebraic value
B. Decreasing in algebraic value
C. Becoming more positive
D. Becoming less negative
If the absolute price elasticity of demand for good A is 0.2, when there is a 10 percent increase in price, we can conclude that quantity demanded
A. has fallen by 20 percent. B. has fallen by 50 percent. C. has fallen by 5 percent. D. has fallen by 2 percent.