"Even if there is a liquidity trap or interest-insensitive investment, a falling price level will increase the real money supply and real wealth, and this impacts consumption"
This is a statement a __________ economist might make as an explanation of why the economy __________ pull itself out of a recession. A) Classical; will
B) Classical; may not be able to
C) Keynesian; will
D) Keynesian; may not be able to
A
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The goal of any monopolist is to maximize:
a. economic profits. b. normal profits. c. price. d. consumer welfare. e. output.
The average National Basketball Association player is over 6 feet tall. The average horse jockey is shorter than 5 1/2 feet tall. This is because height provides NBA players with:
a. d and e. b. an absolute advantage for horse racing. c. an absolute disadvantage for other sports in general. d. a comparative disadvantage in horse racing. e. a comparative advantage in basketball.
Consumer surplus is the difference between:
a. what the consumer is willing to pay and what the consumer must actually pay to receive a good or service. b. the quantity of goods a consumer is willing to buy and the quantity of goods the consumer actually buys. c. what the producer is willing to receive and what the consumer must actually pay to receive a good or service. d. the quantity of goods a producer is willing to and the quantity of goods the consumer actually buys.
One of the reasons why the AD curve slopes downward is that as the
A) price level rises, purchasing power rises. B) price level falls, purchasing power rises. C) nation's income level rises, purchasing power rises. D) nation's income level rises, purchasing power falls. E) This is a trick question, because the AD curve is upward sloping.