An increase in government spending shifts the PPF
A) upward, but does not change its slope.
B) upward, and also changes its slope.
C) downward, but does not change its slope.
D) downward, and also changes its slope.
C
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Because of policy lags in monetary policy, the Fed ________.
A. should base decisions only on what has already happened B. should only focus on fiscal policy C. must try to anticipate changes in the economy before they happen D. should attempt to follow a pro-cyclical policy
The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A movement to point b could be the result of
A) an increase in technology. B) a decrease in the relative price of a soft drink. C) an increase in the relative price of a soft drink. D) an increase in the money price of a soft drink.
Marginally attached workers
A) are not looking for work but indicate that they want and are available for a job and have looked for work sometime in the past 12 months. B) are working part-time, but they want full-time work. C) don't have jobs and are pessimistic about their chances of finding a suitable job. D) have a bad attitude towards work.
Rational choices: a. are based on a comparison of total benefits and total costs
b. can only be made by those who are economists. c. are made based on expectations of the additional benefits and additional costs involved. d. measure benefits based on the past.