An increase in our production possibilities is known as:
A. Inflation.
B. Crowding out.
C. GDP per capita.
D. Economic growth.
D. Economic growth.
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When a deadweight loss occurs in a market, we can be certain that
A) taxes have been imposed in a market. B) the market is a monopoly. C) there underproduction in the market. D) the entire society experiences a loss.
In the above figure, assume the economy is in equilibrium at point d. Then the Fed decreases the money supply so that the new aggregate demand curve is AD1. In the long run, the new price level will be
A) 100. B) 120. C) 130. D) 110.
A firm is making zero economic profits. From this, we know that
A) the firm is going to go out of business. B) implicit costs are zero. C) the firm is going to stay in business, but will not be able to attract new financial capital. D) the firm will stay in business since it is covering all relevant opportunity costs.
The federal funds rate is
A) the interest rate paid on reserves held with the Fed. B) the interest rate at which banks can borrow excess reserves from other banks. C) the interest rate on bonds issued by the federal government. D) none of the above.