Refer to Table 15-3. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if the Federal Reserve does not use monetary policy
If the Fed wants to keep real GDP at its potential level in 2017, it should
A) buy Treasury securities. B) decrease income taxes.
C) sell Treasury securities. D) decrease the required reserve ratio.
C
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Consumer surplus is created when
a. a person trades away a good that yields diminishing marginal utility b. a person's total utility increases when consuming an additional unit of a good c. a good is purchased at a price that is less than the price the consumer would have been willing to pay d. the total utility of a good is greater than its marginal utility e. many consumers want to buy a good and the price goes up
Noise from a hard rock concert is an example of a situation in which
A. social costs that are not external costs. B. social costs are greater than private costs. C. social costs are less than private costs. D. social costs are equal to private costs.
Refer to the graph shown. If actual inflation is 12 percent and expected inflation is 6 percent, the economy will be at point:
A. A. B. B. C. C. D. D.
Provide examples of each: consumer durable goods, consumer nondurable goods, and services. Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers.
1. Which of the following are consumer durable goods? A. A new Ford Fiesta B. Heart surgery C. A dining room table D. A jacket 2. Which of the following are consumer nondurable goods? A. A burrito B. A couch C. Mashed potatoes D. A pair of jeans 3. Which of the following are services A. Your completed taxes B. Tires C. Repairs to your truck D. Peanut butter