The crowding out effect of expansionary fiscal policy refers to which of the following?
A. a reduction in private sector planned investment
B. the reduction in the size of the budget deficit
C. a reduction in interest rates
D. the reduction in the size of the inflationary gap
Answer: A
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The table above shows a nation's production possibilities frontier. The opportunity cost of a robot between combination D and E is
A) 1/4 of a pizza. B) 34 pizzas. C) 30 pizzas. D) 4 pizzas. E) undefined because neither point is production efficient.
The figure above shows the market for tickets to the Super Bowl the day of the game. Suppose the government imposes an entertainment tax of $100 per ticket
a) What is the equilibrium price of a Super Bowl ticket before the tax? What is the price paid by buyers after the tax? What is the price received by sellers after the tax? b) What is the equilibrium quantity of tickets before the tax? What is the equilibrium quantity after the tax? c) Do buyers or sellers bear the largest incidence of the tax?
Although monopoly and perfect competition result in different market outcomes, the fact that firms in both market structures work to maximize their profits ensures that resources are allocated efficiently in both situations
Indicate whether the statement is true or false
The assumption that wages change more slowly than prices implies that the
A) aggregate demand curve has a positive slope. B) aggregate demand curve has a negative slope. C) Phillips Curve has a negative slope. D) Phillips Curve has a positive slope.