Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; potential
C. higher; higher
D. lower; higher
Answer: B
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Based on the graph showing a reduction in the growth of the money supply, as the economy moves from point D to point E on the short-run Phillips curve, real wages rise, causing companies to ______.
a. hire more new workers
b. receive higher relative prices
c. hire fewer new workers
d. increase production
Which of the following is included in Gross Domestic Product (GDP)?
A. government transfer payments B. private transfer payments C. the buying and selling of securities D. the sale of used goods E. none of these
If lenders refuse to state the debt in terms of dollars, then dollars are NOT a
A. medium of exchange. B. unit of accounting. C. store of value. D. standard of deferred payment.
When total utility is falling
A) marginal utility is at a maximum. B) marginal utility is at zero. C) marginal utility is negative. D) marginal utility has decreased, but is now increasing.