Based on the graph showing a reduction in the growth of the money supply, as the economy moves from point D to point F, the trade-off between inflation and unemployment ______.
a. decreases slightly
b. increases slightly
c. holds steady
d. disappears
d. disappears
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In the long run in perfect competition, firms will operate at
a. minimum average total cost. b. an average total cost that is just slightly above the minimum. c. an average total cost that is about 10% above the minimum. d. an average total cost that is below price.
Juan is going to spend all of his income. For the last unit of Good X consumed Juan gets 20 utils and for the last unit of Good Y consumed he gets 10 utils. The price of Good X is $1. The price of Good Y is $10. If Juan wants to maximize his utility he should
A. continue to purchase the same amount of Good X and Good Y. B. increase the consumption of Good X and decrease the consumption of Good Y. C. decrease the consumption of Good X and increase the consumption of Good Y. D. decrease the consumption of Good X and decrease the consumption of Good Y.
An increase in the U.S. interest rate will most likely
A. lead to a decrease in the value of the U.S. dollar. B. lead to an inflow of funds to the United States and an appreciation of the dollar. C. provide a stimulus to U.S. export industries. D. reduce the attractiveness of investment in the United States.
In recent years, many DVCs have come to realize that:
A. Expanded international trade is harmful to DVCs B. Private capital investment is essential for economic growth in DVCs C. The International Monetary Fund is the major institutional barrier to economic growth D. Government involvement in economic development is the only avenue for economic growth