The existence of automatic stabilizers will
A) cause the effects of shocks to aggregate demand to have a larger effect on GDP.
B) reduce the recognition lag of discretionary fiscal policy.
C) eliminate recessions.
D) reduce the size of recessionary and inflationary gaps.
D
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Refer to Goods X and Y. The relative price of good X in terms of good Y is always equal to
Assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions. a. the magnitude of the slope of the budget line. b. the marginal value of X in terms of Y. c. the horizontal intercept of the budget line. d. the vertical intercept of the budget line.
Refer to Scenario 17-1. Following the passage of comparable worth legislation, Unity College responds by placing salaries at $65,000. Which of the following is the result of the legislation?
A) The supply of English professors increases and the supply of business professors decreases. B) There will be a surplus in the market for English professors and the market for business professors will not be affected. C) There will be a surplus in the market for English professors and a shortage in the market for business professors. D) The demand for English professors decreases and the demand for business professors increases.
Nash equilibrium is:
a. where one player maximizes his payoff and the other doesn't b. when each player's strategy is the best response to the other player's strategy c. where the outcome is always efficient d. difficult to determine
Excess reserves of banks equal
a. actual reserves minus required reserves. b. actual reserves minus demand deposits. c. assets minus the liabilities of the banks. d. required reserves minus actual reserves.