In Figure 1 below if the economy were at Y2 then we would expect there to be:
A. a reduction in inventories.
B. an increase in inventories.
C. no change in inventories.
D. an increase in consumption spending.
C. no change in inventories.
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You are the mayor of your home town, and one day you arrive at city hall to find angry voters demonstrating against you. They are mad because your office created a garbage-collection monopoly by awarding only one company a permit to collect garbage in
your town. The voters claim that the company is overcharging and providing poor service. They want you to do something that will lower rates and improve service. You call your staff economist, who presents evidence that there are substantial increasing economies of scale to garbage collection. What are your options if you are interested in efficiency?
If an economy's exports are $600 billion and its imports are $750 billion, its net exports are
A) $1,550 billion B) $150 billion C) -$150 billion D) 1.07.
Banks are required to keep a minimum level of reserves on hand. The intent of this regulation is
A. monetary control rather than bank safety. B. bank safety in case of bank runs. C. maintenance of bank profits. D. limiting the level of bank profits.
Historically, the United States has experienced
A. periods of both increases and decreases in the unemployment rate since World War II. B. no changes in the unemployment rate since World War II. C. continuous decreases in the unemployment rate since World War II. D. continuous increases in the unemployment rate since World War II.