Which of the following policies would be most effective in the steep part of the SRAS demand curve?
a. The interest rate increases by 5 percent.
b. The interest rate increases by 12 percent.
c. The interest rate decreases by 5 percent.
d. The interest rate decreases by 12 percent.
b. The interest rate increases by 12 percent.
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Suppose that the federal government had a budget deficit of $80 billion in year 1 and $90 billion in year 2, but that it experiences budget surpluses of $40 billion in year 3 and $20 billion in year 4
Also assume that the government uses any budget surpluses to pay down the public debt. At the end of these four years, the Federal government's public debt would have A) increased by $110 billion. B) decreased by $57.5 billion. C) increased by $230 billion. D) decreased by $110 billion.
It is possible that a multi-product monopolist will reduce the quality of a product below what its users prefer in order to make more profit
Indicate whether the statement is true or false
When the opportunity cost of producing carrots increases as more carrots are produced, then
a. no more carrots will be produced b. resources are equally suited to the production of carrots and to other goods c. the production possibilities curve shifts inward d. the production possibilities curve shifts outward e. the law of increasing costs is in effect
An economy that experiences decreasing real GDP and increasing prices is said to suffer from _____.
(A) Stagflation (B) A depression (C) A recession (D) A business cycle