The point where the PPF intersects the horizontal axis is
A) unattainable.
B) attainable and productive efficient.
C) attainable but productive inefficient.
D) attainable and neither productive efficient nor productive inefficient.
B
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A prediction based on rational expectations ________
A) relies solely on past experience B) will always be superior to one based on adaptive expectations C) is based on real, rather than nominal variables D) will not always be accurate
If the marginal propensity to consume in an economy is .8, net exports are zero, and government spending is $33 billion at each level of real GDP, the slope of the economy's aggregate expenditures schedule will be:
A. .8. B. .2. C. 5. D. .125.
Refer to the graph below showing the revenue curves for a monopolist. The elastic portion of the demand curve ranges from quantity:
A. 0 to Q4
B. Q2 to Q4
C. 0 to Q3
D. Q3 to Q4
Which one of the following is an example of discretionary fiscal policy used to correct an inflationary gap?
A) an increase in government expenditures approved by Congress B) decrease in the money supply by the Federal Reserve C) a tax increase passed into law by Congress D) an agreement among major banks to lower interest rates