The median voter theorem states that the outcome of a majority vote is likely to represent the preferences of the voter who is in the political middle
Indicate whether the statement is true or false
TRUE
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________ is fixed when moving along the aggregate supply curve
A) The real wage rate B) Real GDP C) Employment D) The price level E) The money wage rate
If initially the money supply is $2 trillion, velocity is 5, the price level is 2, and real GDP is $5 trillion, a fall in the money supply to $1 trillion
A) reduces real GDP to $2.5 trillion. B) causes velocity to rise to 10. C) decreases the price level to 1. D) decreases the price level to 1 and decreases velocity to 2.5.
In Egypt, in 1970, the Aswan Dam was completed. By preventing the annual flood of the Nile (thereby providing millions of acres of arable land) and by providing electricity, the dam was expected to raise the living standard of the Egyptian people—and it has. However, it has also led to a rise in the water table, which causes Egypt’s limestone structures, including the pyramids, to absorb more salt water and to suffer serious erosion from crystallized salts. Combined with air pollution and traffic vibration, this erosion is turning the pyramids to dust. Economists analyze this type of problem with the concept of
A. an externality. B. the antiquity problem. C. a free-rider problem. D. the public good problem. E. the trade-off between equity and output.
How are price ceilings and price floors similar?
a. They both clarify price signals sent to consumers and producers. b. They both cause persistent shortages. c. They both distort price signals sent to consumers and producers. d. They both cause persistent surpluses.