Which of the following sets of policies would unambiguously move the economy to full employment?
What will be an ideal response?
increase in government purchases, decrease in taxes, and increase in transfer payments
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According to the table shown, when 5 units are produced:
This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.
A. profits are maximized.
B. profits are positive.
C. the firm is producing less than the profit-maximizing amount.
D. the firm is producing more than the profit-maximizing amount.
Census data on the income distribution among families in the United States in recent years show
a. a rising share earned by the top fifth and a declining share earned by the bottom fifth b. a rising share earned by the bottom fifth and a declining share earned by the top fifth c. both the share earned by the top fifth and the share earned by the bottom fifth rising d. both the share earned by the top fifth and the share earned by the bottom fifth falling e. falling total income in the top fifth
Suppose the country that pegs its currency has an overvalued real exchange rate and that output is currently above the natural level of output. Which of the following will occur as the economy adjusts to this situation?
A) P will decrease over time until Y = Yn. B) A reduction in the pegged value of the domestic currency will cause a leftward shift of the AD curve. C) Net exports will increase as the economy adjusts to this situation. D) Domestic goods will become less competitive as the economy adjusts by itself. E) none of the above
The price elasticity of demand is measured by the
A) percentage change in quantity demanded divided by the percentage change in price. B) percentage change in price divided by the percentage change in quantity demanded. C) change in quantity demanded divided by the change in price. D) change in price divided by the change in quantity demanded.