In the classical model, a rightward shift in the aggregate demand curve will, in the long run,
A) increase real GDP and the price level.
B) increase real GDP and will not change the price level.
C) decrease real GDP and will not change the price level.
D) not change real GDP and will increase the price level.
D
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Economics indicates that government funding of special interest projects and favoritism of some business firms relative to others will lead to
a. efficient allocation of resources because the government action will correct the failures of the market. b. the funding of productive projects that will improve the well-being of most citizens. c. economic inefficiency because the funding will be driven by political rather than economic considerations. d. a decline in political contributions and a reduction in the quality of the candidates willing to run for political office.
Elephants are endangered, but cows are not because
a. cows are not as valuable as elephants. b. elephants are a common resource, while cows are private goods. c. cows are a common resource, while elephants are private goods. d. it is legal to kill cows but not elephants.
Suppose earnings are given by E = $60 + $7(24 ? L), where E is earnings and L is the hours of leisure. What is the maximum this worker can earn in three (3) days?
A. $228 B. $684 C. $417 D. $519
Too much spending chasing too few goods is the essence of what type of inflation?
What will be an ideal response?