In the absence of trade, a country produces at a point where its production-possibility curve is tangent to the highest possible community indifference curve.
Answer the following statement true (T) or false (F)
True
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If real GDP exceeded potential real GDP and inflation was increasing, which of the following would be an appropriate fiscal policy?
A) an increase in oil prices B) an increase in taxes C) an increase in government spending D) a decrease in the money supply and an increase in the interest rate
A profit maximizing monopolist always chooses to operate at the output level where
A. P = MR = MC. B. MR = MC = AC. C. P > MR = MC. D. P < MC = MR.
If velocity is a constant, then the equation of exchange is an economic model
a. True b. False Indicate whether the statement is true or false
What is the value of the deposit multiplier in a 100-percent reserve banking system?
A) 0. B) 1 C) a value between 0 and 1 D) a value greater than 1