What is the main problem with using physical units, instead of dollars, as the measure of total economic activity?
a. Other countries do not use units of measurement.
b. Units of measurement are more difficult to calculate than dollars.
c. Physical units of measurement change from year to year.
d. Different products have different units of measurement.
d. Different products have different units of measurement.
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Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for potatoes and that steak and potatoes are complements. What panel describes what happens in this market when the price of steak rises?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
On the graph above, suppose the economy has moved from point H to point G. If the shock was temporary and inflation expectations are adaptive, the economy will next ________
A) return to point H B) move to point F C) move to a point between points G and H D) remain at point G E) none of the above
Economic goods are items that
A) are used only by economists. B) provide satisfaction to users. C) cannot be sold at any price in the market. D) individuals would pay to get rid off.
A tax rate cut, increase in government purchases, and creating an investment tax credit would shift: a. only the aggregate demand curve
b. only the aggregate supply curve. c. both the aggregate supply and aggregate demand curves. d. neither the aggregate supply nor the aggregate demand curve.