Refer to Figure 14.2. Other things equal, an increase in the expected price of an important natural resource 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 A to point C.


B

Economics

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If a central bank reduces inflation 2 percentage points and this makes output fall 3 percentage points and unemployment rise 5 percentage points for one year, the sacrifice ratio is

a. 5/2. b. 3/2. c. 2/3. d. 2/5.

Economics

If the economy is represented in the graph shown and is currently at point E2, which action is the Fed most likely to undertake?

A. Contractionary monetary policy, because it will shift AD to the left. B. Expansionary monetary policy, because it will shift AD to the right. C. Expansionary monetary policy, because it will shift AD to the left. D. Contractionary monetary policy, because it will shift AS to the right.

Economics

When disposable income is 4000, APC is about


A. .55.
B. .66.
C. .77.
D. .88.

Economics

Refer to Figure 8.11. If Fred's profit in the top rectangle were 1,300 instead of 500, then the path of the game would be:

A. Fred chooses a small quantity and Barney enters. B. Fred chooses a large quantity and Barney enters. C. Fred chooses a small quantity and Barney stays out. D. Fred chooses a large quantity and Barney stays out.

Economics