If a nation experiences a significant improvement in technology that affects only Aggregate Supply, then its:
a. Average price level and real GDP should remain constant until there is a change in Aggregate Demand.
b. Average price level and real GDP should fall.
c. Average price level and real GDP should rise.
d. Average price level should fall, and real GDP should rise.
e. Average price level should rise, and real GDP should fall.
.D
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In the housing market, rents serve the purpose of
A) making landlords rich. B) rationing the availability of existing housing. C) providing an entry by the government into the housing market. D) increasing tax collections by the community.
The Soviet government in the 1980's never abandoned the ruble as the official currency. However, the people of Moscow preferred to accept
a. cigarettes in exchange for goods and services, because they were convinced that cigarettes were going to soon become hard to come by. b. American dollars in exchange for goods and services, because rubles were extremely hard to come by. c. goods such as cigarettes or American dollars in exchange for goods and services, reminding us of the fact that government decree by itself is not sufficient for the success of a commodity money. d. All of the above are correct.
According to this model, if the government uses a uniform standard
Suppose that two firms, X and Y, face the following abatement costs: MACX = 1.2AX, MACY = 0.3AY TACX = 0.6AX2 TACY = 0.15AY2 Further assume that the combined abatement standard is 40 units for both firms. a. firm Y would face a marginal abatement cost that is higher than that for firm Y b. that standard would achieve a cost-effective solution c. firm Y should do more of the abating and firm X should do less to move closer to a cost-effective solution d. firm X’s marginal abatement cost would be $48, and firm Y’s marginal abatement cost would be $12
According to the economic way of thinking, government officials tend to vote on legislation that
A) concentrates benefits on a well-organized group. B) disperses costs throughout a great number of politically unorganized people. C) generates short-term benefits and postpones the costs. D) does all of the above. E) does none of the above.