Figure 17-1
Which of the following is true about the economy depicted in Figure 17-1?
a.
It is experiencing supply-side inflation.
b.
Policy makers have chosen to fight inflation rather than unemployment.
c.
The increase in aggregate demand has increased prices but not real GDP.
d.
The slope of the aggregate supply curve embodies the trade-off between unemployment and inflation.
d
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Consider two goods X and Y available for consumption. Assume that the price of X changes while the price of Y remains fixed. For these two goods, the price-consumption curve illustrates the
A) relationship between the price of X and consumption of Y. B) utility-maximizing combinations of X and Y for each price of X. C) relationship between the price of Y and the consumption of X. D) utility-maximizing combinations of X and Y for each quantity of X.
A tariff can be defined as a:
a. tax on imports. b. tax on exports. c. legal limit on imports. d. legal limit on exports.
Which of the following would be classified as a liability for a bank?
a. Required reserves. b. Excess reserves. c. Loans. d. Checkable deposits.
Labor is available at a wage of $10 . The last worker hired by Cal's Corn Farm added 20 ears of corn, which Cal has priced at four ears for $1 . What advice would you give Cal?