If the IS curve is relatively steep, then
A) there can be no long-run tradeoff between inflation and unemployment.
B) monetary policy cannot be very effective in changing GDP.
C) rational expectations theory is probably correct.
D) Ricardian equivalence most likely holds.
E) budget deficits will not affect future capital accumulation.
B
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"It is possible to restrict imports and still maintain a fixed level of exports." Do you agree or disagree? Why?
What will be an ideal response?
When Sonoma Vineyards reduces the price of its Cabernet Sauvignon from $15 a bottle to $12 a bottle, the result is an increase in
A. the supply of this wine. B. the demand for this wine. C. the quantity of this wine demanded. D. the quantity of this wine supplied.
The marginal product of an input is defined as the change in:
A. total input attributable to the last unit of an output. B. average output attributable to the last unit of an input. C. total output attributable to the last unit of an input. D. average output attributable to the last unit of an output.
The farther an indifference curve is from the origin, the more total utility it yields.
Answer the following statement true (T) or false (F)