Consumer confidence affects the final price level of an expansionary policy. In this graph, what is the difference in price level between consumer confidence increasing and consumer confidence not increasing?
a. PL2 for consumer confidence increasing; PL1 for consumer confidence not increasing
b. PL1 for consumer confidence increasing; PL2 for consumer confidence not increasing.
c. PL4 for consumer confidence increasing; PL2 for consumer confidence not increasing
d. PL3 for consumer confidence increasing; PL4 for consumer confidence not increasing
c. PL4 for consumer confidence increasing; PL2 for consumer confidence not increasing
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Suppose that the price of a jar of peanut butter is $5 and the price of a jar of jelly is $3. What is the relative price of a jar of peanut butter?
A) 2.400 B) 0.417 C) 0.250 D) 1.667
Refer to Table 2-6. What is James's opportunity cost of making a tricycle?
A) 2 tricycles B) 3/4 of a wagon C) 1/2 of a wagon D) 1/2 of a tricycle
If a central bank does not want to allow the domestic currency to appreciate, it will ________ international reserves by selling its currency, thereby ________ the monetary base and increasing the risk of higher inflation
A) lose; decreasing B) lose; increasing C) acquire; decreasing D) acquire; increasing
An economic variable that doesn't move in a consistent pattern with aggregate economic activity is called
A) procyclical. B) countercyclical. C) acyclical. D) a leading variable.