A rightward shift in the aggregate demand curve can be caused by an increase in:
A. the price level.
B. business investment spending.
C. taxes.
D. production costs.
Answer: B
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The Consumer Price Index was 247 in year 1 and 272 in year 2. The rate of inflation in year 2 was:
a. 6 percent b. 12 percent c. 8 percent d. 10 percent
Keynesian policy:
A. promotes spending more and taxing less to boost economic activity to potential GDP. B. refers to fiscal policy. C. refers to policies that actively shift aggregate demand in an effort to reach full employment. D. All of these are true.
Which question is typically asked by economic engineers?
A. Can we rely on the markets to distribute income fairly? B. Can we assume that people always behave rationally? C. Can we design mechanisms to improve the coordination of people's actions? D. Can we increase the amount of mathematics in the model?
An important assumption in the theory of public choice is that
A. scarcity does not exist in the government sector. B. individuals will only operate outside the political process when their well-being is involved. C. individuals will act within the political process to maximize their collective well-being. D. individuals will act within the political process to maximize their individual well-being.