The economic way of thinking indicates that personal benefits and costs influence the actions of
A) consumers in the private sector but not voters in the public sector.
B) taxpayers, but not recipients of government-provided goods and services.
C) consumers, producers, voters, and politicians in both the private and the public sectors.
D) producers in the private sector but not politicians in the public sector.
C) consumers, producers, voters, and politicians in both the private and the public sectors.
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Figure 19-2
In Figure 19-2, the derived demand curve is the line
A. ABCD. B. CDEF. C. DEF. D. ABCDEF.
During what period of time did the United States most consistently adhere to the gold standard?
A) from 1914 until 1929 B) from the eighteenth century until the nineteenth century C) from 1944 until 1980 D) from the nineteenth century until the 1930s
In the early 2000s the European Central Bank warned that higher oil prices were a threat to economic growth. The Bank President called the higher prices "a sizeable adverse shock" to the economy. In terms of the AS/AD framework, this shock would be represented as a shift:
A. right of the AD curve. B. down (to the right) of the AS curve. C. up (to the left) of the AS curve. D. left of the AD curve.
Based on the theory of the expectations-augmented Phillips curve, if the expected inflation rate is 2%, the short-run Phillips curve will
A. be horizontal at an expected inflation rate of 2%. B. have a kink at an inflation rate of 2%. C. be the same as the long-run Phillips curve. D. intersect the long-run Phillips curve at the natural unemployment rate, when the inflation rate is 2%.