A macroeconomist — as opposed to a microeconomist — might study the effect of
a. changes in the money supply on the inflation rate.
b. an increase in the gas tax on fuel consumption.
c. a technological advance on the natural gas industry.
d. a hurricane on prices in the orange industry.
a
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Refer to Figure 13.1. All else equal, an increase in corporate taxes would best be represented by a movement from
A) point A to point B. B) point B to point A. C) point B to point C. D) point C to point B.
If the government announces a new increase in spending with no change in taxes, which of the following would most likely occur?
a. No change in the aggregate demand curve as well as no movement along it b. A leftward shift of the aggregate demand curve c. An upward movement along the aggregate demand curve d. A rightward shift of the aggregate demand curve e. A downward movement along the aggregate demand curve
Which of the following statements is true?
A. Neither sunk costs nor the sinking of a cost will affect a decision maker's best choice. B. Both sunk costs and the sinking of a cost will affect a decision maker's best choice. C. Sunk costs will affect a decision maker's best choice, but the sinking of a cost will not. D. Sunk costs will not affect a decision maker's best choice, but the sinking of a cost will.
Which of the following will shift the production possibilities curve outward?
a. a decrease in the market price of both goods b. an increase in the unemployment rate c. a hurricane that destroys buildings throughout Florida d. an increase in the capacity utilization of existing factors