All of the following are assumptions of the production possibilities curve EXCEPT
A) resources are fully employed.
B) there is a fixed time period.
C) there is a fixed level of technology.
D) there is a fixed demand for the products.
Answer: D
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C = $750 + 0.75(1 - 0.4)y i = $600 g = $500 nx = -$50
Use the above data to: a. Calculate the equilibrium level of GDP b. Calculate the value of the expenditure multiplier c. Find the change in the initial equilibrium GDP if autonomous investment increases by $75. d. Find the change in the initial equilibrium GDP if autonomous government purchases decreases by $50. e. Find the change in the initial equilibrium GDP if autonomous net exports increase by $10.
Bid-rigging is more likely when
a. auctions are larger b. auctions are frequent c. auctions generate different sets of potential bidders d. the auctioneer is paid on commission rather than a fixed fee
According to adaptive expectations theory, which of the following would be the result of expansionary monetary and fiscal policies?
A. The economy self-corrects to the natural rate of unemployment. B. There is a long-run trade off between inflation and unemployment. C. The inflation rate falls. D. These policies can succeed in reducing the unemployment rate.
When you withdraw $1,000 from your bank account:
A. both your and the bank's financial assets rise by $1,000. B. the bank's financial liabilities and assets fall by $1,000, and you have exchanged one financial asset for another. C. the bank's financial assets fall by $1,000 and your financial liabilities rise by $1,000. D. the bank's financial liabilities fall by $1,000 and your financial assets rise by $1,000.