Economic growth solves the problem of scarcity
a. True
b. False
Indicate whether the statement is true or false
False
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
Which of the following statements is correct?
A. When marginal utility is positive, an increase in the quantity consumed will increase total utility. B. When marginal utility is zero, an increase in the quantity consumed will make total utility zero. C. When marginal utility is decreasing, an increase in the quantity consumed will decrease total utility. D. When marginal utility is positive, an increase in the quantity consumed will decrease total utility.
If the central bank can act as a lender of last resort during a banking panic, banks can
A) call in their loans to their customers and eventually restore the public's faith in the banking system. B) satisfy customer withdrawal needs and eventually restore the public's faith in the banking system. C) borrow more and more money from the central bank, and this will lower its reserves and decrease the public's faith in the banking system. D) encourage the public to borrow directly from the central bank, and this will worsen the banking panic.
A perfectly competitive market is characterized by the free entry and exit of firms
a. True b. False Indicate whether the statement is true or false