In situations in which prices cannot be used to signal relative scarcities of goods, which of the following can serve as a rationing mechanism?
A. political power
B. random assignment
C. queuing
D. All of these
Answer: D
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Compare the effect on the price level and real GDP of a decrease in tax rates assuming a supply-side effect versus no supply-side effect
Compared to no supply-side effect, including a supply-side effect for the decrease in tax rates will cause the price level to increase ________ and real GDP to increase ________. A) more; less B) less; less C) more; more D) less; more
If the relative price of S in terms of T is 2 and S has a nominal price of $1, then the relative price of T is
A) $2. B) 50 cents. C) 1/2 S. D) Need more information to answer.
The cyclical deficit is that portion of the deficit
a. that results from the economy being below the natural rate of output. b. that would exist even if the economy were at its natural rate of output. c. is a function of the level of automatic stabilizers. d. both a and c. d. None of the above
If MPL = 3, and MRTS = -4 what is MPK?
A) 12 B) -12 C) 3/4 D) -3/4