One of the major chains of causation in macroeconomic policymaking is government manipulation of ________ in order to affect ________, and thus ultimately ________
A) the money supply, the interest rate, equilibrium income
B) the money supply, equilibrium income, the interest rate
C) the interest rate, equilibrium income, the money supply
D) equilibrium income, the interest rate, the money supply
E) equilibrium income, the money supply, the interest rate
A
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In the figure above, if the government provides a subsidy to colleges of $6,000 per student per year, what is the tuition?
A) $10,000 per year B) $12,000 per year C) $8,000 per year D) $6,000 per year
"Hicks' Third Law of Demand" states that "most" goods must be:
a. gross substitutes. b. gross complements. c. net substitutes. d. net complements.
Diminishing returns occur because
A. Of inefficiency in the production process. B. A firm increases the amount of a variable input without changing a fixed input. C. Of lower opportunity costs of the factors of production. D. Of the use of inferior factors of production.
Economists usually use the term "recession" to refer to:
A. any slowdown in the growth of real GDP. B. zero real GDP growth. C. two or more consecutive quarters of declining real GDP. D. a reduction in nominal GDP lasting more than six months.