Which of the following could explain why there is an increase in potential GDP but the equilibrium level of GDP falls?
A) AD did not shift and SRAS shifted to the left. B) AD shifted to the right by less than SRAS.
C) SRAS shifted to the right by more than LRAS. D) AD shifted to the right by more than SRAS.
A
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Banks help savers find productive uses for their funds because banks are specialized in:
A. evaluating the riskiness of stocks. B. securing government guarantees for loans. C. obtaining preferential tax treatment for savers. D. gathering information about and evaluating potential borrowers.
Refer to the scenario above. The opportunity cost of producing one pound of apples in Beta is:
A) 1/2 pounds of oranges. B) 15 pounds of oranges. C) 10 pounds of oranges. D) 2 pounds of oranges.
Because of the income effect, the labor supply curve is
A) eventually backward bending as wage rate increases. B) positively sloped. C) horizontal. D) vertical.
Negative externalities lead to over supply in a market
Indicate whether the statement is true or false