An increase in the quantity of capital shifts both the long-run and short-run aggregate supply curves
Indicate whether the statement is true or false
TRUE
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Assume there are only two individuals in an economy, Lisa and Bart. The utility possibilities frontier for these individuals is given as:
120 = UL + UB where UL is Lisa's utility and UB is Bart's utility. Lisa's current level of utility is 20, Bart's level of utility is 90. This combination is: A) inefficient. B) economically efficient. C) impossible, because it is outside of the welfare frontier. D) none of the above
According to the purchasing power parity, if the price level in the US rises relative to Mexico
a. The dollar will appreciate relative to the peso b. The dollar will depreciate relative to the peso c. There is no effect on either currency d. None of the above
The most recent data indicates households in the top fifth of the income distribution earn more than ten times as much income as those in the bottom fifth
a. True b. False
When the government increases spending (holding taxes constant), the budget balance _____. This causes the interest rate in the market for loanable funds to _____ and investment to _____
Fill in the blank(s) with correct word