In the above figure, points u, v, y, and z show
A) an inefficient allocation of society's scarce resources.
B) possible combinations of televisions and personal computers.
C) a constant trade-off between televisions and personal computers.
D) that society prefers more televisions than computers.
B
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Suppose there are two policy options facing a vote in the Senate. In the first, government spending will increase $50 billion, while the second option is to cut taxes by $50 billion. A Keynesian economist would argue for
A) the spending option because it has a bigger impact on total spending. The spending directly raises total spending plus it works through the multiplier, while the tax cut only works through the multiplier. B) the tax option because it is easier to pass. The effects on total spending would be identical. C) the spending option because it won't affect the deficit the way the tax cut would. D) the tax option because it also affects the incentives workers face. Long-run aggregate supply will increase with the tax cut, but not with the spending increase.
In moving along a demand curve, everything is held constant except buyers' income
Indicate whether the statement is true or false
_____ income will be effected if the change in the price level differs from the change in a person's nominal income
Fill in the blank(s) with the appropriate word(s).
Which of the following will not cause a shift in the demand curve for DVDs?
A. a change in wealth B. a change in the price of DVDs C. a change in the price of Blu-ray discs D. a change in income