For private goods allocated in markets,
a. prices guide the decisions of buyers and sellers and these decisions lead to an efficient allocation of resources.
b. prices guide the decisions of buyers and sellers and these decisions lead to an inefficient allocation of resources.
c. the government guides the decisions of buyers and sellers and these decisions lead to an efficient allocation of resources.
d. the government guides the decisions of buyers and sellers and these decisions lead to an inefficient allocation of resources.
a
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
When the market value of the dollar rises relative to other currencies around the world, we say that
A) the supply of dollars has increased. B) the dollar has appreciated. C) the dollar has depreciated. D) the demand for dollars has increased.
Which of the following statements, in the context of U.S. exports, is true?
a. The U.S. exports products produced in the low wage industries. b. Primary products account for the largest share of U.S. exports to developed nations. c. The U.S. mainly exports labor intensive goods. d. Most U.S. exports are produced in high-wage industries. e. A bulk of U.S. exports to developing nations comprise of perishable commodities.
If the consumption function shifts downward, which of the following is the most likely cause?
a. Consumers become more optimistic. b. The price level increased. c. Consumers' incomes increase. d. Real interest rates decrease.