Which of the following contributed to the weak recovery from the 2008-2009 recession?
a. the restrictive monetary policy followed by the Fed
b. constant policy changes that created uncertainty and thereby retarded private business investment
c. sharp reductions in federal spending that were designed to achieve a balanced federal budget
d. failure to run budget deficits that were large enough to exert an impact on aggregate demand
B
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
Prices for fresh fruit, vegetables and other food products are examples of
A) custom prices. B) sticky prices. C) temporary prices. D) auction prices.
Exhibit 6-6 Marginal utility for data for clothes and amusement Quantity Clothes Amusement 1 15 20 2 13 18 3 10 15 4 8 12 5 6 10 Refer to Exhibit 6-6. Your budget is $50. The price of amusement goods is $10. If the price of clothes falls to $4, which of the following statements is true?
A. The marginal-utility-to-price ratio for clothes will decrease. B. The marginal-utility-to-price ratio for clothes will increase. C. The quantity demanded of clothes will decrease. D. The quantity demanded for amusement goods will remain constant.
Based on the figure below, what would be the opportunity cost in terms of wings when producing 20 more pizzas if the economy is efficiently producing 150 wings and 50 pizzas?
What will be an ideal response?