With an increase in income, the consumer will maximize utility on a new indifference curve that represents a higher level of utility
a. True
b. False
Indicate whether the statement is true or false
True
Economics
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The cost of holding money balances increases when
a. the inflation rate decreases. b. the nominal interest rate increases. c. the nominal interest rate decreases. d. nominal GDP is far from full employment.
Economics
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Economics
Describe the shape of the typical production possibilities curve and explain why it has this shape.
What will be an ideal response?
Economics
Explain several implications and characteristics of efficiency wage theories
What will be an ideal response?
Economics