A general and ongoing rise in the prices of goods and services in an economy is called inflation
a. True
b. False
Indicate whether the statement is true or false
True
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The size of a deadweight loss in a market is reduced by
A) market price being close to marginal cost. B) government legislating a ceiling price. C) government legislating a price floor. D) creative destruction.
An increase in government spending shifts the PPF
A) upward, but does not change its slope. B) upward, and also changes its slope. C) downward, but does not change its slope. D) downward, and also changes its slope.
At an output level above the profit-maximizing level, for a perfectly competitive firm, a reduction in output will:
a. reduce total revenue more than total cost. b. reduce total cost more than total revenue. c. increase total revenue more than total cost. d. increase total cost more than total revenue. e. decrease total revenue and total cost by the same amount.
One of the most important areas of disagreement among macroeconomists today is over
A) the slope of the IS curve. B) the slope of the LM curve. C) the definition of consumption spending. D) the definition of government spending. E) none of the above