The change in ________ brought about by a change in real wealth that results from a change in the ________ is the real wealth effect.
A. the money supply; money demand
B. aggregate output; level of investment
C. taxes; interest rate
D. consumption; price level
Answer: D
You might also like to view...
Some economists argue that the official poverty figures overstate poverty in this country. Why?
What will be an ideal response?
In the figure below, AB is the production-possibility curve of Canada. The line PQ shows the price ratio of one bushel of wheat/bale of cotton. The international price ratio is 0.25 bushels of wheat/bale of cotton as shown by the line RS. I1 and I2 are two of the community indifference curves of Canada. After Canada engages in free trade, it will:
A. produce at point S1 and consume at point C1. B. produce at point S1 and consume at point C0. C. produce and consume points not labeled in the graph. D. produce and consume at point C0.
Assume that the population is 200 million, the labor force is 100 million, and 90 million people are employed. Then, the unemployment rate is
A. 4.5%. B. 5%. C. 9%. D. 10%.
When every good or service is produced up to the point where the last unit provides ________, allocative efficiency occurs
A) a marginal benefit to society equal to the marginal cost of producing it B) a marginal benefit to society greater than the marginal cost of producing it C) a marginal benefit to society less than the marginal cost of producing it D) a marginal benefit to society equal to zero