If the economy is experiencing an inflationary gap and the government wants to accelerate the adjustment to the long-run equilibrium, it should
A) reduce aggregate demand by cutting government spending or raising taxes.
B) reduce aggregate demand by increasing government spending or cutting taxes.
C) increase aggregate supply by cutting government spending or raising taxes.
D) increase aggregate supply by increasing government spending or lowering taxes.
A
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Which of the following is not a determinant of an individual's marginal product?
A) talent B) money income C) experience D) educational level
An individual in the US wants to buy office equipment from England which costs 2,000 pounds. If the exchange rate is 1pound=$1.9, how much will the office equipment cost him in dollar terms?
a. $2,000 b. $2,800 c. $3,800 d. $1052
Gerald spends his weekly income on gin and cocktail olives. The price of gin has risen from $7 to $9 per bottle, the price of cocktail olives has fallen from $6 to $5 per jar, and Gerald's income has stayed fixed at $46 per week. Since the price changes, Gerald has been buying 4 bottles of gin and 2 jars of cocktail olives per week. At the original prices, 4 bottles of gin and 2 jars of cocktail
olives would have a. exactly exhausted his income. b. cost more than his income. c. cost less than his income. d. could have maximized his satisfaction given his budget constraint.
Most markets in the United States:
A. are monopolies. B. have some degree of competitiveness, but are not perfectly competitive. C. are perfectly competitive. D. have very few competitive features and so are regulated by the government.