A relative price shift occurs when
A. the inflation rate of a good or service is significantly higher or lower than the overall inflation rate.
B. the inflation rate of a good or service matches the overall inflation rate.
C. the inflation rate of a good or service remains unchanged.
D. inflation exceeds the average revenue per capita.
Answer: A
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Roughly what percent of American families lived below the poverty line in 1960?
A) 8% B) 18% C) 28% D) 38% E) 48%.
All of the following explain the impact lag except the time between
A) a change in the money supply and a change in interest rates. B) a change in interest rates and a change in investment. C) a change in investment and the change in GDP. D) a change in the economy and the use of a tool of monetary policy.
Economists who support a monetary rule as opposed to an activist monetary policy believe that the effectiveness lag in monetary policy is
A) short and variable, policy changes affect AD quickly and are predictable. B) zero, policy changes have an immediate effect on expenditures. C) long and variable, policy changes affect AD slowly over time and are unpredictable. D) long, but predictable.
Table 1.1 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S. capacity, ceteris paribus. Table 1.1Production Possibilities for BombersCombinationNumber of B-1 BombersOpportunity cost (Foregone Stealth)Number of Stealth BombersOpportunity cost (Foregone B-1)S0NA10 T1 9 U2 7 V3 4NAOn the basis of Table 1.1, what is the opportunity cost of producing at point S rather than point T?
A. 0.9 Stealth bombers. B. 1 Stealth bomber. C. 1 B-1 bomber. D. 10 Stealth bombers.