Refer to Figure 10.1. If the level of real GDP is initially Y3, spending is ________ production and there is an unexpected ________ in inventories
A) greater than; increase
B) greater than; decrease
C) less than; increase
D) less than; decrease
B
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When the dollar depreciates, the cost to Americans of foreign goods
A. rises and the CPI falls. B. rises and the CPI rises. C. falls and the CPI rises. D. falls and the CPI falls.
In 1973 the OPEC countries
A. lowered the price of oil by 50%. B. raised the price of oil by 50%. C. doubled the price of oil. D. quadrupled the price of oil.
The short-run consumption curve may shift upward over the long run largely because
a. people become wealthier b. the marginal propensity to save increases c. the 45-degree line becomes a 90-degree line d. the demand curve for investment is upward sloping e. economic growth, although still positive, slows down
Pareto improvement can be a reallocation of resources that makes more than one person better off.
A. True B. False C. Uncertain