A production possibilities curve
What will be an ideal response?
A.
defines the maximum quantity of one good or service that can be? produced, given that a specific quantity of another is produced.
B.
shows the possibilities available for increasing the output of one good or service by reducing the amount of another.
C.
represents all possible combinations of maximum outputs that could be? produced, assuming a fixed amount of productive resources of a given quality.
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Refer to Table 27-1. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if Congress and the president do not use fiscal policy
If Congress and the president want to keep real GDP at its potential level in 2017, they should A) increase the level of interest rates. B) decrease the money supply. C) decrease government purchases. D) decrease income taxes.
If Congress and the president pursue an expansionary fiscal policy at the same time as the Federal Reserve pursues an expansionary monetary policy, how might the expansionary monetary policy affect the extent of crowding out in the short run?
What will be an ideal response?
Why must the spot price equal the futures price on the settlement date?
What will be an ideal response?
In theory, when a local government receives a grant to finance a certain type of expenditure, it should spend more if the grant _____
a. is a matching grant rather than a categorical grant b. is a categorical grant rather than a matching grant c. is a general grant rather than a matching grant d. is a categorical grant rather than a matching grant