During the recession of 2009, the consumption function temporarily shifted ________ as a fall in house prices ________ wealth and encouraged people to ________ more
A) downward; raised; spend
B) downward; raised; save
C) upward; lowered; save
D) downward; lowered; save
E) downward; lowered; spend
D
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How does the existence of the fringe alter the price and output in an oligopoly market?
The following economy produces two products.ProductsProduction Possibilities?ABCDEFSteel012345Wheat100907555300Refer to the above table. In moving from possibility A to F, the cost of a unit of steel in terms of a unit of wheat:
A. remains constant. B. increases. C. decreases. D. increases from A to B, and decreases from B to F.
The existence of the time inconsistency problem in macro policy suggests which of the following?
A) Use fiscal and monetary policy to fine tune the economy. B) Reduce the independence of the central bank. C) Appoint someone who is more conservative (economically) than the rest of the government to head the central bank. D) Intervene frequently in the foreign exchange market. E) Eliminate rational expectations from econometric models used for forecasting.
The mercantilism policy failed to generate gains from trade for countries which adopted it because of: a. increases in consumer spending
b. high levels of federal debt. c. supply-side shocks from the oil-exporting countries. d. runaway inflation in the U.S. e. retaliations from other countries.