Which of the following is assumed when constructing a production possibilities curve?
A) a fixed amount of resources
B) the efficient use of resources
C) resources of a given quality
D) All of the above are correct.
D
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Suppose the economy is at the natural real GDP. Changing macroeconomic policy to lower the interest rate while not affecting output means shifting the IS curve to the ________ and the LM curve to the ________
A) right, right B) right, left C) left, right D) left, left
Michael spends $10 a month on Pez dispensers and Superman action figures. His marginal-utility-to-price ratio for the Pez dispensers is 40, while his marginal-utility-to-price ratio for Superman action figures is 47 . Explain why Michael is not maximizing his utility and how can he change his behavior to increase his utility?
During the debate on the stimulus package in 2009 and 2010, Republicans argued in favor of increased government spending as opposed to tax cuts based in part on the impact government spending would have on aggregate supply
a. True b. False Indicate whether the statement is true or false
Studies show that, in the United States,
A) price elasticity of demand for agricultural products has hovered around 3.2 for many years. B) as real income has been increasing, the per-capita demand for food has been decreasing. C) as real income has been increasing, the per-capita demand for food has been increasing by much more. D) none of the above