According to the new classical approach to the aggregate supply curve, the aggregate supply curve slopes upward because
A) increases in the price level result in lower real balances.
B) higher current output results in higher desired investment.
C) higher prices result in higher levels of spending as consumers attempt to stay ahead of inflation.
D) businesses have difficulty in distinguishing relative price increases from general price increases.
D
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Explain the meaning of the word "convergence" in the context of economic growth and standards of living
What will be an ideal response?
Which of the following is a problem associated with gross domestic product (GDP) as a measure of social welfare? a. It includes many nonmarket activities
b. It takes into account the value of only those goods which are widely used. c. It takes into account the cost of environmental damage caused by pollution. d. It includes intermediate goods as a separate entry. e. It excludes the value of leisure time.
Sanjiv is a keyboard player in a progressive metal band. His band offers fans three types of merchandise with the band’s logo: buttons, stickers, and T-shirts. The band charges $20 for a T-shirt but offers buttons and stickers for free. How does marginal utility explain this decision?
a. The marginal utility of the buttons and stickers declines as fans take more, whereas the marginal utility of the T-shirts increases as fans buy more. b. The marginal utility of an additional sticker or button is very low compared to the marginal utility of an additional T-shirt. c. The marginal utility per dollar of the buttons and stickers is much higher than the marginal utility per dollar of the T-shirts. d. It is easier for fans to reach consumer equilibrium by taking additional buttons and stickers than it is when buying additional T-shirts.
The formal recognition of the threat to the European Union allowed for ________ because the systemic risk clauses of Articles 123 and 125 were invoked.
A. cross-national bailouts B. purchase of debt by the European Central Bank C. tax cuts D. increases in spending