Which of the following events challenged Keynesian views, and led to the popularity of Milton Friedman's ideas?
a. The hippie community started advocating socialist values.
b. Hard-core republicans came into office.
c. The U.S. economy faced high levels of inflation and unemployment simultaneously.
d. The oil crisis exploded.
e. Countries that followed Friedman's ideas performed better.
c
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If a country is producing efficiently and is on the production possibilities frontier, the only way to produce more of one good is with an advance in technology
Indicate whether the statement is true or false
The above figure depicts the Edgeworth box for two individuals, Al and Bruce. Point a is NOT Pareto efficient because
A) Al's MRS exceeds Bruce's MRS. B) the point is not near the center of the box. C) Al's indifference curve is not far enough away from the origin. D) All of the above.
Demand sensitivity depends on all of the following except:
a. how low is the price of the good. b. the sensitivity of firms' output to changes in its price. c. the consumer's income. d. the availability and closeness of substitutes. e. the amount of time a consumer has to adjust to price changes.
Other things being equal, if you took money out of your demand deposit account and put it in a savings deposit account:
a. M1 would increase and M2 would increase. b. M1 would increase but M2 would not change. c. M1 would decrease and M2 would decrease. d. M1 would fall but M2 would not change.