Opportunity costs exist because
a. there is a price attached to virtually every good or service
b. technology is not fixed in the economy
c. people have different tastes and preferences
d. limited resources cannot satisfy all of the wants in society
e. the production possibilities frontier is bowed in with respect to the origin
D
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
Suppose the price level, the money wage, and the price of all other resources rise by 10 percent. This set of changes leads to
A) an upward movement along the LAS curve. B) a downward movement along the LAS curve. C) an upward movement along the SAS curve. D) a leftward shift of the LAS curve.
It is possible for every nation to have BOP surpluses
Indicate whether the statement is true or false
As a result of recent empirical research, there has been a convergence of Keynesian and monetarist opinion to the view that
A) money is all that matters. B) money does matter. C) money does not matter. D) fiscal policy is all that matters.