Automatic stabilizers tend to stabilize the level of economic activity because they
A. Are changed quickly by Congress.
B. Increase the size of the multiplier.
C. Control the rate of change in prices.
D. Increase spending during recessions and reduce spending during inflationary periods.
Answer: D
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Keesha consumes only milkshakes and burgers. At her consumer equilibrium, which of the following is TRUE when Keesha can buy any portion of a unit of a milkshake or burger?
A) The marginal utility per dollar from a milkshake will exceed the marginal utility per dollar from a burger if she likes burgers more than milkshakes. B) The marginal utility per dollar from a burger will exceed the marginal utility per dollar from a milkshake if she likes burgers more than milkshakes. C) The marginal utility per dollar will be the same for each good. D) The marginal utility will be the same for each good.
Any increase in efficiency increases output available for distribution
a. True b. False Indicate whether the statement is true or false
The percentage share of income of the top quintile on curve X is
A. 27.
B. 45.
C. 55.
D. 73.
Suppose we observe the price level increasing and real GDP decreasing. An explanation for this is that
A. the dollar strengthened and the effect on aggregate supply was less than the effect on aggregate demand. B. the dollar weakened and the effect on aggregate supply was less than the effect on aggregate demand. C. the dollar strengthened and the effect on aggregate supply was greater than the effect on aggregate demand. D. the dollar weakened and the effect on aggregate supply was greater than the effect on aggregate demand.