If the economy is experiencing inflation, then the most appropriate government policy would be to:
A. shift the aggregate demand curve by using a tax increase coupled with spending cuts.
B. shift the aggregate demand curve by using a tax increase coupled with more spending.
C. shift the aggregate demand curve by using a tax cut coupled with spending cuts.
D. shift the aggregate supply curve by using a tax cut coupled with more spending.
Answer: A
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Jimbo has a comparative advantage over Ned in producing a good if
A) Jimbo can produce more of the good than Ned can in a given time period. B) Jimbo has a higher opportunity cost of producing the good than does Ned. C) Jimbo has a lower opportunity cost of producing the good than does Ned. D) Jimbo has to trade off more than Ned does to produce the good.
Nominal GDP is the value of goods and services
A) adjusted for inflation. B) adjusted for anticipated inflation. C) using base-year prices. D) using current -year prices.
An upward shift of the consumption function might be caused by:
a. an increase in disposable income. b. a decrease in disposable income. c. a decrease in the price level. d. a decrease in household wealth. e. an increase in the interest rate.
Quantity of Frozen Latte-On-A-Stick SuppliedPriceFlo's SupplyRita's Supply10020334649951512
Refer to Table 3.1, which shows Flo's and Rita's individual supply schedules for frozen latte-on-a-stick. Assuming Flo and Rita are the only suppliers in the market, what is the market quantity supplied at a price of $2?
A. 0 B. 2 C. 3 D. 5