Which of the following would be considered an example of a macroeconomic problem?
A) Should Microsoft reduce the price of its Windows operating system?
B) Should the federal government extend the eligibility period for unemployment benefits?
C) Should Mitsubishi eliminate one of its production shifts?
D) Should JP Morgan Chase increase the interest rate it charges its credit card customers?
B
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Assume a simple macroeconomic model. When inventories rise unexpectedly,
a. income is above its equilibrium value. b. income will rise until it reaches its equilibrium value. c. total spending is higher than total output. d. All of the above.
Which of the following are justifications for running a budget deficit?
a. avoiding raising tax rates b. stabilizing an economy during a recession c. both a and b d. neither a nor b
A citizen in a developing country with a currency policy of convertibility on the current account could engage in all of the following transactions except:
A. sell foreign currency resulting from the exports of manufactured t-shirts. B. sell foreign currency resulting from the sale of a U.S. treasury bond. C. purchase foreign currency in order to import a BMW. D. purchase foreign currency in order to purchase a U.S. treasury bond.
We assume that firms, when they are deciding the best rate of output at which to produce
A) try to get the highest price possible. B) want to maximize sales. C) want to minimize costs. D) want to maximize profits.