Refer to the figure above. What is the total surplus after Barylia opens up to free trade?
A) $455
B) $800
C) $1,000
D) $1,200
C
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The key difference between "quantitative easing" and "credit easing" is that ________
A) the goal of the former is to raise expected inflation B) the latter refers to a substantial change in the composition of the central bank's balance sheet C) the latter refers to a substantial expansion of the central bank's balance sheet D) the former is endorsed by Federal Reserve Chairman Ben Bernanke, while the latter was devised by Japan's Prime Minister Shinzo Abe E) none of the above
Long-run expansion in an increasing-cost industry increases each firm's marginal and average costs by
a. saving money on per-unit production costs b. bidding up the price of resources c. holding the price of resources constant d. forcing down the price of resources e. bidding up each firm's marginal revenue
Assume an economy has automatic stabilizers in place that include a progressive tax structure and a transfer payment system. Then in a period of high economic growth and high inflation, we would expect:
a. tax revenues to fall and unemployment compensation to rise. b. average tax rates and welfare payments to decline. c. the national debt to become larger. d. average tax rates and government revenues to rise. e. government spending on social security benefits to rise.
Money supply is to income as
a. real is to ideal. b. stock is to flow. c. real is to nominal. d. flow is to stock.