The economizing problem is essentially one of deciding how to make the best use of
A. unlimited resources to satisfy limited economic wants.
B. limited resources to satisfy limited economic wants.
C. limited resources to satisfy unlimited economic wants.
D. unlimited resources to satisfy unlimited economic wants.
Answer: C
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If the U.S. dollar decreases in value relative to other currencies, how does this affect the aggregate demand curve?
A) This will move the economy down along a stationary aggregate demand curve. B) This will shift the aggregate demand curve to the right. C) This will move the economy up along a stationary aggregate demand curve. D) This will shift the aggregate demand curve to the left.
Is Europe an optimum currency area?
What will be an ideal response?
If workers always see inflation coming, and if they demand wage increases in advance so that inflation does not erode real wages, then the economy's aggregate supply curve on the AD-AS diagram will
a. be a vertical line corresponding to potential GDP. b. be a horizontal line corresponding to potential GDP. c. slope downward. d. slope upward.
Why do we use two supply curves in the aggregate goods and services market? What is the difference between them, and why do they have different slopes?