Refer to the given data. If the unemployment rate in the economy fell to 6 percent, we could conclude that:
Answer the question on the basis of the following information for a specific year in a
hypothetical economy for which Okun's law is applicable:
A. only structural unemployment remained.
B. the economy's production possibilities curve shifted outward.
C. the economy had moved from a point inside its production possibilities curve to a point on or very near the curve.
D. nominal GDP would rise, but real GDP would fall.
C. the economy had moved from a point inside its production possibilities curve to a point on or very near the curve.
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If the economy is experiencing inflation, then the most appropriate government policy would be to:
a. shift the aggregate demand curve by using a tax increase coupled with spending cuts. b. shift the aggregate demand curve by using a tax increase coupled with more spending. c. shift the aggregate demand curve by using a tax cut coupled with spending cuts. d. shift the aggregate demand curve by using a tax cut coupled with more spending. e. shift the aggregate supply curve by using a tax cut coupled with spending cuts.
A demand shock
a. is any event that causes the aggregate demand curve to shift b. is usually caused by a change in the price level c. is usually caused by a change in real GDP d. can be traced back to a shift in the economy's production possibilities frontier e. is generally a good thing for the economy
What assumptions are necessary for a market to be perfectly competitive? Explain why each of these assumptions is important
What will be an ideal response?
The National Rifle Association (NRA) lobbies aggressively for the interests of gun owners. For example, the NRA has been instrumental in passing conceal-and-carry laws in several states. Such behavior on the part of NRA is called
A. consumer loss. B. rent-seeking behavior. C. government failure. D. discrimination.