Efforts to reduce the unemployment rate are likely, in the short run, to lead to
A. a decrease in the inflation rate.
B. an increase in the inflation rate.
C. no change in the inflation rate.
D. have no impact on unemployment.
Answer: B
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A demand schedule
A) shows that demand is on schedule. B) is a graph showing a relationship between the quantity demanded and the price of a good. C) shows the quantity demanded at one price. D) is a list of the quantities demanded at each different price when all other influences on buying plans remain the same. E) shows how the demand changes when the supply changes.
The first fundamental theorem of welfare economics states that
A) under certain conditions, a competitive equilibrium is Pareto optimal. B) a competitive equilibrium is always Pareto optimal. C) under certain conditions, a Pareto optimum is a competitive equilibrium. D) a Pareto optimum is always a competitive equilibrium.
If government spending and tax collections both increase by the same amount, then according to the classical loanable funds market:
a. the demand for loanable funds will increase and the interest rate will rise. b. the demand for loanable funds will fall and the interest rate will rise. c. savings will rise and interest rates will fall. d. nothing will shift and the interest rate will remain constant. e. none of the above.
Demand-side economists treat saving as a leakage from potential spending.
Answer the following statement true (T) or false (F)