One of the most important areas of disagreement among macroeconomists today is over
A) the slope of the IS curve.
B) the slope of the LM curve.
C) the definition of consumption spending.
D) the definition of government spending.
E) none of the above
E
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Which one of the following is NOT a part of the M1 definition of money?
A) paper currency (i.e., Federal Reserve notes) B) coins C) savings accounts D) checkable and debitable accounts
Suppose there is a decrease in short-run aggregate supply. If the Federal Reserve wants to stabilize output it should
a. buy bonds. These purchases also move the price level closer to its original level. b. buy bonds. However these purchases move the price level farther from its original level. c. sell bonds. These purchases also move the price level closer to its original level. d. sell bonds. However these purchase move the price level farther from its original level.
In the short run average costs eventually increase because of ________, and in the long run average costs eventually increase because of ________.
A. diminishing returns; diseconomies of scale B. diseconomies of scale; diminishing returns C. increasing returns to scale; diseconomies of scale D. constant returns to scale; decreasing returns to scale
Why might it be in the direct economic interest of the United States to finance rain forest conservation programs in the Amazon?
What will be an ideal response?