Long-run aggregate supply and a country's production possibility curve (PPC)
A. are closely related.
B. are examples of microeconomic models.
C. have no relationship.
D. are inversely related.
Answer: A
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Amos Long's marginal utility of income function is given as: MU(I) = I1.5, where I represents income. From this you would say that he is
A) risk averse. B) risk loving. C) risk neutral. D) none of the above
Demand-pull inflation is worse than cost-push inflation because, in addition to higher prices, demand-pull inflation also reduces employment
a. True b. False Indicate whether the statement is true or false
Once either expansionary or contractionary fiscal policy has been undertaken,
A. a time lag exists between implementation and the results of the policy. B. taxes will need to be adjusted because of the recognition time lag. C. aggregate demand will respond quickly in the short run but the economy will not improve in the long-run. D. aggregate demand will respond quickly and the problems in the economy will be corrected.
The curve that shows the relation between quality and firm value is:
A. a vertical line. B. in the shape of an inverted U. C. a flat line. D. U-shaped.