The income and living standards of a nation will increase when
A) the availability of goods and services that people value increases.
B) the imports of goods and services fall.
C) jobs are protected and total employment expands.
D) the prices of goods and services increase.
A) the availability of goods and services that people value increases.
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With each successive round of the multiplier effect, the amount of the feedback ______.
a. gets larger b. gets smaller c. exactly doubles d. remains constant
When analyzing the behavior of oligopolists, which of the following is crucial for the success of game theoretic analysis?
A. Payoffs do not need to reflect the true payoffs of the oligopolists, they just need to be greater than or equal to zero. B. Do not construct the payoffs of the oligopolists to be interdependent, as the payoff of one player usually does not affect the payoff of the other players. C. Assume that oligopolists always move simultaneously. D. Make sure the problem you are considering is of a one-shot or repeated nature, and you model it accordingly because the order in which players make decisions is important.
The price elasticity of demand for a good is relatively elastic if:
A. there are a large number of substitutes. B. the consumer has more time to make decisions about purchasing the good. C. the good is less of a necessity. D. All of these
In the classical model, an increase in the unemployment rate
A. will result in an increase in the price level if the reduction in output is caused by a change in aggregate demand. B. is a signal of demand-pull inflation. C. will persist when the reduction in output is caused by a reduction in aggregate demand. D. will likely be temporary.