Policies taken to move the economy closer to potential output:
A. must be expansionary policies.
B. must be contractionary policies.
C. are called stabilization policies.
D. are lagging policies or automatic policies.
Answer: C
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Suppose Factory A emits 15,000 units of "Yuck" monthly, Factory B emits 30,000 units, and Factory C emits 45,000 units. Also suppose A's cost of reducing the emission is $1 per unit, B's cost is $2 per unit, and C's cost is $3 per unit
If the EPA prohibits any factory from emitting more than 15,000 units of yuck per month, what would be the total cleanup cost? A) $15,000 B) $40,000 C) $45,000 D) $90,000 E) $120,000
Several studies have shown promising links between green tea consumption and cancer prevention. How does this affect the market for green tea?
A) The quantity of green tea demanded decreases because this new information will increase the price of green tea. B) The green tea demand curve shifts to the right because of a change in tastes in favor of green tea. C) The green tea demand curve shifts to the left because this new information will increase the price of green tea. D) The quantity of green tea demanded increases because of a change in tastes in favor of green tea.
On a graph, an increase in quantity demanded is represented by a:
a. Movement downward and to the right along the demand curve b. Leftward shift of the demand curve c. Rightward shift of the demand curve d. Movement upward and to the left along the demand curve
The table below shows the number of labor hours required to produce one umbrella and one bushel of corn in the United Kingdom and the rest of the world. If the United Kingdom and the rest of the world begin to trade with each other, the international price of umbrellas will lie between ________ and Labor hours to make:In the United KingdomIn the Rest of the World1 umbrella3.002.001 bushel of corn1.000.25
A. three bushels of corn per umbrella; eight bushels of corn per umbrella. B. 1/3 of a bushel of corn per umbrella; three bushels of corn per umbrella. C. 1/8 of a bushel of corn per umbrella; 1/3 of a bushel of corn per umbrella. D. 1/8 of a bushel of corn per umbrella; eight bushels of corn per umbrella.