The Keynesian portion of the short-run aggregate supply (SRAS) curve implies
A. the price level does not change.
B. flexible prices and wages.
C. a downward slope.
D. an upward slope.
Answer: A
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Utility is the set of numerical values that
A) yields an absolute level of pleasure from a bundle of goods. B) reflects the relative ranking of various bundles of goods. C) describes how much more a consumer prefers one bundle to another. D) yields a cardinal ranking of bundles.
When resources are allocated by markets, profits and losses provide information about
a.which products are priced too high and which are priced too low. b.which resources are being used productively and which resources should be allocated to other uses. c.which industries need to be subsidized and which need to be subject to additional regulation. d.which businesses should be taxed more heavily and which should be subsidized.
The direct transfer of goods and services rather than cash is known as
A. Welfare income. B. Poverty support. C. In-kind transfers. D. Transfer payments.
The real interest rate is the rate of inflation minus the nominal interest rate.
Answer the following statement true (T) or false (F)