If the consumer sentiment index turns down sharply over a period of several months, which of the following is most likely to occur in the near future?
a. an increase in aggregate demand and expansion in real output
b. a reduction in aggregate demand and a contraction in real output
c. a reduction in aggregate demand and expansion in real output
d. an increase in aggregate demand and a contraction in real output
B
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The evolution of macroeconomic theory
A) usually precedes and causes major macroeconomic events. B) usually is in reaction to major macroeconomic events. C) is evenly divided between causing and reacting to major macroeconomic events. D) proceeds rather independently of major macroeconomic events.
In production and cost analysis, the short run is the period of time in which one (or more) of the resources employed in the production process is fixed or incapable of being varied
a. true b. false
Graphically express a production possibilities curve. What do points on, inside and outside the curve represent? What does a rightward shift of the curve represent? How is economic growth expressed in terms of the production possibilities model?
Points below the production possibilities frontier are inefficient because it is possible to make someone better off without making anyone else worse off
a. True b. False Indicate whether the statement is true or false