The aggregate demand curve shifts to the left when there is ________
A) autonomous tightening of monetary policy
B) an increase in the nominal interest rate
C) an increase in inflation
D) all of the above
E) none of the above
A
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Suppose Congress increased spending by $100 billion and raised taxes by $100 billion to keep the budget balanced. What will happen to real equilibrium GDP?
A) Real equilibrium GDP will fall. B) Real equilibrium GDP will rise. C) Real equilibrium GDP will initially rise, but then fall below its previous equilibrium value. D) There will be no change in real equilibrium GDP.
For public goods, in general, the optimal output level is found where the marginal benefits of additional production equal marginal cost
a. True b. False
Betty's Bagels makes and sells bagels from their local bakery. If Betty's Bagels become more popular with local residents and the probability of selling additional bagels increases, Betty's expected marginal benefit curve from holding additional bagels in inventory will shift to the ________ and the profit-maximizing number of bagels to hold in inventory will ________.
A) right; decrease B) left; increase C) left; decrease D) right; increase
Which of the following statements is true? a. The opportunity cost of a decision is equal to the explicit cost in monetary terms
b. The opportunity cost of a decision is the value of the best foregone alternative. c. Some economic decisions have zero opportunity cost. d. The opportunity cost of attending college is the same for all students at the same university but may differ among students at different universities.