The MPC indicates the fraction of
A. An additional dollar of disposable income that will be spent.
B. An additional dollar of disposable income that will be saved.
C. Total income that will be saved.
D. Total income that will be spent.
Answer: A
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If an economy's resources are fully employed,
a. a great deal of unemployment will be needed to achieve even a small reduction in inflation. b. the aggregate supply curve (and thus the Phillips curve) will be flat. c. the aggregate supply curve (and thus the Phillips curve) will be steep. d. Both a and c are correct.
Which account of the balance of payments is most likely to be directly affected by a rise in the domestic price level?
a. Current international transactions b. Net nonreserve-related international borrowing/lending c. Official reserve-related (central bank) transactions d. None.
As of 2013, which was the only country in the world to be debt-free?
A. Japan B. Greece C. Korea D. Brunei
Economic profit affects:
A. the allocation of resources but not the level of resource use. B. the level of resource use but not the allocation of resources. C. the allocation of resources and the level of resource use. D. neither the allocation of resources nor the level of resource use.