At levels of output close to full employment, the aggregate supply curve is probably
A. very flat.
B. very steep.
C. sloped downward.
D. perfectly elastic.
Answer: B
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Is it possible to see gains in a nation's real standard of living without any positive economic growth?
A) No, a nation's standard of living cannot improve without economic growth. B) Yes, but only if the government prints more money so people feel rich. C) Yes, if workers can produce the same level of output in fewer work hours, so that more leisure time could push up the real standard of living. D) None of the above: Economic growth has nothing to do with a nation's standard of living.
An increase in the reserve deposit ratio, ?, will most likely have which of the following effects?
A) a rightward shift in the IS curve B) a leftward shift in the IS curve C) an upward shift in the LM curve D) a downward shift in the LM curve
The problem of overfishing in waters that are commonly owned can be solved by
A. subsidizing fishing. B. the use of the Coase Theorem. C. establishing property rights for fishing in the waters. D. allowing the market to ration fish.
An example of an ineffective price ceiling would be the government setting the maximum price of wheat at ________ per bushel when the market price is at $5.00 per bushel.
A. $2.25 B. $3.00 C. $4.75 D. $6.00