Assume a government likes a particular equilibrium along the contract curve. It can achieve that equilibrium through competition and income redistribution
What will be an ideal response?
True. This statement is called the Second Welfare Theorem.
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The Katrina disaster in New Orleans decreased the ability of oil companies to purify crude oil into gasoline. This caused the:
A. supply curve for gasoline to shift inward.
B. supply curve for gasoline to shift outward.
C. quantity of gasoline supplied to move in along the supply curve.
D. quantity of gasoline demanded to move out along the demand curve.
Government loan guarantees tend to have the effect of:
A. socializing losses and privatizing gains. B. socializing gains and privatizing losses. C. socializing both gains and losses. D. privatizing both gains and losses.
At one time, many economists believed that
A. the government could determine the slope of the Phillips curve. B. the government could make the Phillips curve horizontal. C. the government could decide at which point on the Phillips curve the economy should be. D. the government could determine what the Phillips curve should be.
Calculate the change in the price level for each of the following events, taken one at a time, with other variables unchanged.(a)Money supply increases 10%.(b)Money demand increases 5%.(c)Money supply decreases 5% while money demand increases 5%.(d)Money supply increases 15% while money demand increases 5%.
What will be an ideal response?