Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Considering both country's production possibilities frontiers, we can infer that Country A will specialize in:
A. trucks, and be willing to accept no less than 5 cars for each truck.
B. cars, and be willing to give no more than 5 cars for each truck.
C. trucks, and be willing to accept no more than 5 cars for each truck.
D. cars, and be willing to give no less than 5 cars for each truck.
B. cars, and be willing to give no more than 5 cars for each truck.
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A fiscal policy action to close an expansionary gap is to:
A. increase transfer payments. B. decrease government purchases. C. decrease taxes. D. increase the marginal propensity to consume.
A college degree makes a person more productive according to
a. both the human-capital and the signaling theories of education. b. the human-capital but not the signaling theory of education. c. the signaling but not the human-capital theory of education. d. neither the human-capital nor the signaling theory of education.
Starting on a Phillips curve with expected inflation equal to 5% and unemployment at its natural rate, show what happens to unemployment if the Fed tries to reduce inflation, but has no credibility. As time passes and people realize that the inflation rate is now lower, what happens to the short-run Phillips curve?
What will be an ideal response?
The HITECH Act of 2009 provides $20 billion of subsidies to encourage hospitals and physicians to:
A. Use more hi-tech diagnostic equipment B. Adopt electronic medical-records systems C. Switch from human lab-technicians to electronic ones D. Devote more research efforts toward hi-tech treatments