The short-run effects of an increase in the expected price level include
a. a lower level of output and a lower price level.
b. a lower level of output and a higher price level.
c. a higher level of output and a lower price level.
d. a higher level of output and a higher price level.
b
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A defendant forced to pay punitive damages must pay the plaintiff
a. the exact amount of actual damage. b. more than the amount of actual damage. c. less than the amount of actual damage. d. nothing.
Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfares are $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1400. Your only alternative use for your frequent-flyer coupon is for your trip to Atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The Chicago-Atlanta round-trip airfares are $450.What is the opportunity cost of using the coupon for the Miami trip?
A. $500 B. $450 C. $100 D. $550
When opportunity costs rise as more of a good is consumed, the production possibilities frontier will be concave (bowed out) with respect to the origin
a. True b. False
If the Fed wants to reduce banks' reserves, it can
a. buy securities in the open market. b. lower the reserve ratio. c. lower the federal funds rate. d. raise the discount rate.