Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point A to Point B, ________ additional OLED TVs could be produced when the production of LCD TVs is reduced by 30.
A. exactly 20
B. more than 20
C. fewer than 20
D. exactly 90
Answer: A
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Exhibit 12-9 Negative Income Tax
?
As shown in Exhibit 12-9, a family of four does not pay income taxes at:
A. an income of $25,000. B. any income between zero and $20,000. C. all levels of income. D. any income above $20,000.
The money price of a good is that price
A. expressed in today's dollars. B. expressed in constant 2017 dollars. C. expressed in purchasing power against a common item like bread. D. that would clear the market.
If the Fed wants to sell more government bonds than people are willing to buy, then the Fed should
A. Encourage a government agency to buy the bonds. B. Decrease the price it asks for the bonds. C. Switch to another type of monetary policy lever. D. Switch to fiscal policy.
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease