"It matters how the government spends any extra dollars." The economist who said this most likely believes that
A) a dollar spent on one government project could raise Real GDP more than a dollar spent on some alternative government project.
B) the AS curve is upward-sloping.
C) the tax multiplier is larger than the government spending multiplier.
D) government should increase in both size and scope.
E) none of the above
A
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A period of stagflation can be considered as part of the normal aftermath of a
A. decrease in aggregate demand. B. period of high unemployment. C. period of low unemployment. D. period of inward shifting aggregate demand.
The table above gives the demand schedule for snow peas. The demand curve for snow peas is a straight line and so the elasticity of demand is
A) 1 at all prices. B) the same at all prices but not 1. C) higher at higher prices. D) lower at higher prices.
Factors which determine the price of corn would be studied in macroeconomics
a. True b. False Indicate whether the statement is true or false
Competitive pricing is efficient because
A) the price that consumers pay reflects the opportunity cost to society of producing the good. B) firms make positive economic profits in long-run equilibrium. C) average revenue equals average cost. D) firms produce above the minimum efficient scale.