An increase in income _____
a. makes the budget line flatter
b. makes the budget line steeper
c. makes the consumer worse off
d. makes the consumer achieve a higher level of utility
e. makes the consumer more selfish
d
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According to the interest-rate-based monetary policy transmission mechanism, an increase in the money supply generates
A) increased spending on consumer goods and services directly, which causes an increase in aggregate demand. B) an increase in aggregate supply since the supply of money is part of aggregate supply. C) lower interest rates, which causes an increase in planned real investment spending and an increase in aggregate demand. D) an increase in nominal GDP and a change in the price level, but no change in real GDP.
Burning coal to generate electricity can create pollution. If the market for generating electricity is competitive and is allowed to operate without any government intervention, is the equilibrium quantity of coal burned equal to, more than, or less
than the efficient quantity?
If we consider the reality that each worker has different skills, then the production possibilities frontier would:
A. have a convex shape. B. have a concave shape. C. be a straight line. D. shift outward.
The natural rate of unemployment is constant over time
a. True b. False Indicate whether the statement is true or false