Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in the above figure. Which of the following best describes Max's preferences?
A) d > b > e
B) d = b = e
C) a = b > c
D) a = b > e
D
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An assumption of neoclassical growth theory is that
A) technological change is random. B) technological change can be influenced by savings. C) more growth encourages more technological change. D) None of the above answers is correct.
An advantage of automatic stabilizers is that this type of fiscal policy is not subject to:
a. imprecise knowledge of full-employment real GDP. b. special interest groups. c. lag time problems. d. All of these are true.
If the U.S. government changes its policy toward Cuba by allowing U.S. firms to export their goods to Cuba, the
a. Cuban aggregate expenditure curve will shift upward and the equilibrium level of national income in the U.S. will decrease b. Cuban aggregate expenditure curve will shift downward and the equilibrium level of national income in Cuba will decrease c. Cuban aggregate expenditure curve will shift upward and the equilibrium level of national income in Cuba will increase d. U.S. aggregate expenditure curve will shift downward and the equilibrium level of national income in the U.S. will decrease e. U.S. aggregate expenditure curve will shift upward and the equilibrium level of national income in the U.S. will increase
Most economists believe that
a. a monetary policy that achieves price stability will reduce uncertainty and provide the framework for strong economic growth. b. demand stimulus policies will reduce the long-term average rate of unemployment. c. expansionary monetary policy, if persistently followed, will reduce nominal interest rates. d. inflation is primarily the result of large budget deficits and other elements of expansionary fiscal policy.