In the long run, monetary policy has a lasting impact only on
What will be an ideal response?
the price level
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Suppose Country A had net taxes of $30 million and government expenditures of $35 million. In addition, household saving in Country A totaled $5 million while consumption was $80 million
The government of Country A is running a budget ________ and national saving is ________ million. A) surplus; $5 B) deficit; -$5 C) deficit; $0 D) surplus; $25
The concepts of specialization and gains from trade can be applied to:
A. international trade. B. why globalization has expanded recently. C. consumer decisions. D. household decisions.
Assume that Greece has a comparative advantage in fish and Germany has a comparative advantage in cars. If these two countries specialize and trade according to their comparative advantage
A. all individuals in both countries will benefit. B. Greece will specialize in and export cars. C. Germany will produce more cars than in the absence of trade. D. Germany will produce more fish than in the absence of trade.
The price elasticity of demand along a linear demand curve is
A. one. B. infinite. C. more elastic at higher prices than at low prices. D. constant.