Refer to the production possibility graph above. Assume that the economy is in equilibrium at point e. If there is an increase in the wage rate, the new equilibrium is most likely to be
A) point e.
B) point d.
C) point f.
D) point h.
E) point b.
A
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Which of the following conditions is violated if there is a free rider problem?
(a) universality (b) exclusivity (c) transferability (d) enforceability
How do car dealers help reduce adverse selection?
What will be an ideal response?
Suppose that the economy is operating below the full employment level of real GDP. If a liquidity trap exists, a(an) ________ policy would be most effective for solving the problem.
A. expansionary monetary policy B. contractionary fiscal policy C. expansionary fiscal policy D. contractionary monetary policy
Refer to the graph above. If the interest rate rises from 2 percent to 3 percent, the supply of money must have:
Increased by $50 billion Decreased by $150 billion Decreased by $100 billion Decreased by $50 billion