An economy is said to be saving lives efficiently
a. if the number of lives saved increases each year
b. whenever the cost of saving lives is decreasing
c. if it is operating on its production possibilities frontier
d. if more resources are devoted to saving lives than to any other activity
e. if fewer resources are devoted to saving lives than to any other activity
C
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A negative supply shock causes ________ to ________
A) aggregate demand; increase B) aggregate demand; decrease C) short-run aggregate supply; decrease D) short-run aggregate supply; increase
Which of the following groups believes that the economy will move toward and achieve equilibrium at full employment without inflation if government just keeps its hands off the economy?
a. classical school b. Keynesian school c. neo-Keynesian school d. rational expectations school e. supply-side school
The base period is the time period used for comparative analysis for the calculation of real GDP.
Answer the following statement true (T) or false (F)
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher