If the government uses stabilization policies to reduce inflation, the economy may have to suffer
A. higher rates of real GDP growth.
B. higher rates of unemployment.
C. lower rates of unemployment.
D. higher rates of price level growth.
Answer: B
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In Macroland autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, investment is fixed at 50, government expenditures are fixed at 150, and net exports are fixed at 20. Aggregate expenditure equals
A. 290 + 0.25Y. B. 290 + 0.75Y. C. 320 + 0.75Y. D. 320 + 0.25Y.
Natural gas is difficult to store. What implication does this fact have for the elasticity of supply of natural gas?
What will be an ideal response?
Which of the following best describes a command economy?
A) An economy that is characterized by barter trade of goods and services B) An economy where strong controls are imposed by the ruling authority C) An economy in which resources are allocated through the price mechanism. D) An economy in which there are a few privately owned firms
If real GDP doubles in 35 years, its average annual growth rate is approximately:
A. 1%. B. 2%. C. 3%. D. 4%.