Slope of a linear PPF is constant between any two points
What will be an ideal response?
Can figure out opportunity cost of producing one more of each item
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People eat at restaurants less often when their incomes fall because of a recession. Eating at restaurants must be
A) an inferior good. B) a normal good. C) a complement to other goods. D) a substitute for other goods. E) an inelastic good.
Short run economic costs must be lower than long run economic costs because long run economic costs include the cost of inputs that are fixed in the short run (and thus are not part of short run cost).
Answer the following statement true (T) or false (F)
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and current international transactions in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises, and current international transactions become more negative (or less positive). b. The quantity of real loanable funds per time period falls, and current international transactions become more negative (or less positive). c. There is not enough information to determine what happens to these two macroeconomic variables. d. The quantity of real loanable funds per time period and current international transactions remain the same. e. The quantity of real loanable funds per time period rises, and current international transactions become more positive (or less negative).
Which of the following is most likely to increase the velocity of money?
a) higher frequency of paychecks b) decrease in price level c) decrease in interest rates d) decrease in personal income e) increase in unemployment rate