Which of the following is a microeconomics question?
A. Why do some countries grow faster than others?
B. Is it sensible for a government to subsidize tobacco production?
C. Should Congress and the president take action to reduce global warming?
D. Should the government attempt to influence the interest rate to lower inflation?
Answer: B
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Long-run macroeconomic policies concentrate on:
A) minimizing fluctuations around potential GDP. B) maximizing fluctuations around potential GDP. C) incentives for increasing productivity and the potential output of the economy. D) none of the above.
Refer to Table 2.7. Use the information in the table to calculate the values for national income, personal income, and disposable personal income
What will be an ideal response?
Graphically, economic growth is represented as
A. a movement along the production possibilities curve. B. a movement from a point inside the production possibilities curve to a point on the curve itself. C. an outward shift of the production possibilities curve. D. an inward shift of the production possibilities curve.
An increase in the interest rate will
A. increase the demand for money alone. B. change neither the demand nor the supply of money; rather it will only affect the quantity demanded and quantity supplied. C. decrease the demand for money and increase the supply of money. D. increase the demand for money and decrease the supply of money.