Most macroeconomists agree that the fundamental issues facing an economy are
a. unemployment and inflation, and what should be done about them
b. the economy's long-run equilibrium position and how to get there
c. the quantity of money and its velocity
d. the long-run Phillips curve and the Laffer curve and whether they generate conflicting outcomes
e. government deficits and high taxes
A
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The U.S. provides about _____ percent of the annual membership fees of IMF member countries
a. 5.6 b. 10.2 c. 15.3 d. 17.3 e. 22.4
When consumers face rising gasoline prices, they typically
a. reduce their quantity demanded more in the long run than in the short run. b. reduce their quantity demanded more in the short run than in the long run. c. do not reduce their quantity demanded in the short run or the long run. d. increase their quantity demanded in the short run but reduce their quantity demanded in the long run.
Increasing environmental awareness in the United States has occurred with increasing GDP, which has reduced concerns about basic needs.
Answer the following statement true (T) or false (F)
Suppose that a consumer has a marginal propensity to consume of 0.7. If this consumer earns an extra €2, her consumption spending would be expected to increase by:
A. €0.60. B. €0.70. C. €1.40. D. €1.70.