The economy is at equilibrium at point C which is below potential output. What fiscal policy would increase real GDP?
Refer to the figure above.
A. Shift aggregate demand by increasing taxes
B. Shift aggregate demand by decreasing transfer payments
C. Shift aggregate demand by decreasing government spending
D. Shift aggregate demand by increasing transfer payments
D. Shift aggregate demand by increasing transfer payments
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In the Governing Council, the decision of what policy to implement is made by
A) majority vote of the Executive Board members. B) majority vote of the heads of the National Banks. C) consensus. D) majority vote of all members of the Governing Council.
Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive.
If S3 is the market supply curve, then in the short run, the profit-maximizing level of output for a single firm in this market is ________ gallons per week.
A. 8000 B. 200 C. 400 D. 0
In economics, the concept that individuals are motivated by self-interest and respond predictably to opportunities for gain is known as
A) rational self-interest.
B) altruism.
C) sufficiency.
D) empiricism.
In the market for loanable funds in an open economy, the supply of loanable funds:
A. can come from domestic savers or savers abroad. B. is equal to public savings. C. is equal to private savings. D. is equal to national savings.