When the unemployment rate is less than the natural unemployment rate, real GDP is ________ than potential GDP and the output gap is ________.
A) smaller; negative
B) smaller; positive
C) greater; positive
D) greater; equal to zero
E) greater; negative
C) greater; positive
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A(n) _____ shows combinations of goods that provide an equal level of utility or satisfaction
a. indifference curve b. iso-cost curve c. marginal product curve d. marginal cost curve
A decrease in the cost of nitrogen fertilizer will
A. shift the supply curve of US corn to the right. B. shift the demand curve of US corn to the left. C. shift the demand curve for US corn to the right. D. shift the supply curve for US corn to the left.
Refer to the information provided in Figure 27.3 below to answer the question(s) that follow.
Figure 27.3Refer to Figure 27.3. Assume the economy is currently at Point A on aggregate supply curve AS1. An increase in inflationary expectations that causes firms to increase their prices
A. moves the economy to Point B on aggregate supply curve AS1. B. moves the economy to Point C on aggregate supply curve AS1. C. shifts the aggregate supply curve to AS0. D. shifts the aggregate supply curve to AS2.
Johnny has allocated $30 toward coffee and tea and feels that coffee and tea are perfect substitutes. Due to differences in caffeine levels, his MRS of tea for coffee equals two. If coffee and tea sell for the same price, Johnny will
A) spend all $30 on tea. B) spend all $30 on coffee. C) spend $20 on coffee and $10 on tea. D) be indifferent between any bundle of coffee and tea costing $30.