Refer to Figure 10.3. Inflation increases most rapidly as the economy moves from
A. AD2 to AD3.
B. AD3 to AD2.
C. AD2 to AD1.
D. AD1 to AD0.
Answer: D
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Which of the following is an example of an activity that creates an external cost?
i. a smoker emitting second-hand smoke ii. sulfur emitting from a smoke stack iii. throwing garbage on the roadside A) i only B) i and ii C) iii only D) ii and iii E) i, ii, and iii
Who among the following people will an economist consider underemployed?
a. Someone who prefers to spend more time on leisure and less time on wage-earning activities b. A person who is working part-time at wage-earning activities, but prefers a full-time employment c. A rock star who voluntarily chooses to work part-time d. Someone who is in prison and is willing to work from his cell e. A gardener who hates plants but still does the job because he or she has no other skills
The velocity of circulation has remained constant over long periods of time
a. True b. False Indicate whether the statement is true or false
The Fed's exit strategy refers to how they will exit from political discussion
a. true b. false