When will stabilization policy be most effective in combating recessions?
a. when AS is flat
b. when AS is very steep
c. when AS has a moderately upward slope
d. when AS has a moderately downward slope.
a
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In 2014, South America had a lower average GDP per capita than any other continent
Indicate whether the statement is true or false
Coffee and donuts are complements in consumption. Suppose the economy expands so that consumer income increases, and coffee is a normal good
What impact does this change in the coffee market have on the donut market under a general equilibrium analysis? A) Donut demand shifts rightward and donut price and quantity increase B) Donut demand shifts rightward, donut price increases, and donut quantity declines C) Donut demand shifts leftward, donut price declines, and donut quantity increases D) Donut demand shifts leftward and donut price and quantity decline
Which of the following statements is true?
a. The speculative demand for money at possible interest rates gives the demand for money curve its upward slope. b. There is an inverse relationship between the quantity of money demanded and the interest rate. c. According to the quantity theory of money, any change in the money supply will have no effect on the price level. d. All of these.
The median voter votes yes for a project if
A) the value of the project for him is larger than the tax he needs to pay. B) the value of the project for him is smaller than the tax he needs to pay. C) the total benefits are positive. D) the total cost is zero.