Which of the following will increase the natural rate of interest?
A) An increase in the saving rate
B) A decrease in inflationary expectations
C) An increase in government spending
D) A decrease in the money supply
C
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
Product innovation:
A. is accurately reflected in the basket of goods. B. is not an issue for the CPI since it uses a fixed basket of goods and services. C. doesn't cause the CPI to be overestimated. D. presents a problem for those calculating the CPI because they use a fixed basket of goods.
Suppose that a vaccine is developed for a highly contagious strain of flu. The likelihood that anyone will get this flu decreases as more people receive the vaccine. One of the demand curves below represents the private demand for the vaccine and the other represents the social demand for the vaccine.
The external benefit of each dose is:
A. $30 B. $20 C. $50 D. $70
Which of the following would be viewed as a common property problem?
A) Your property is burglarized. B) Vandals damage your property. C) People pick all of the flowers in a public park. D) To be safe you must lock your door at night.