Which of the following is an example of monetary policy?
a. Raising the interest rate
b. Decreasing the tax rate
c. Increasing the amount of government spending
d. Fixing a price ceiling for necessary goods
a
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Starting from long-run equilibrium, a favorable inflation shock results in a short-run equilibrium with ________ inflation and ________ output.
A. lower; lower B. higher; lower C. higher; higher D. lower; higher
When a state road has a pothole, the state department of transportation is responsible for filling it. When a local road has a pothole, the town is responsible for filling it. Either way, the money ultimately comes from the taxpayers. This is an example of how government at different levels:
a. cannot agree on areas of responsibility. b. prevents markets from being profitable. c. pays for public goods. d. allows free riders to take advantage.
An example of underutilization is producing
a. as many muffins and widescreen televisions as the economy is capable of making b. fewer muffins and widescreen televisions than the economy is capable of making c. more muffins and fewer widescreen televisions d. fewer muffins and more widescreen televisions
A Lorenz curve that represents an unequal income distribution is
A) a straight line starting at the origin. B) a straight line starting at 100% C) a bowed curved. D) a line that has a kink in the middle of it.