Automatic stabilizers can return real GDP to its potential level without any government intervention
a. True
b. False
Indicate whether the statement is true or false
False
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The principle of increasing opportunity cost leads to
A) a production possibilities frontier (PPF) that is bowed inward from the origin. B) a production possibilities frontier (PPF) that is bowed outward from the origin. C) an inward shift of the production possibilities frontier (PPF). D) an outward shift of the production possibilities frontier (PPF).
If the government regulates the market in the above figure in a way to achieve efficiency, then ________ tons of paper will be produced and consumed
A) 0 B) 100 C) 200 D) None of the above answers is correct.
The real interest rate can be thought of as
A) the price of current consumption relative to future consumption. B) the price of current consumption completely smoothed over a lifetime. C) the price of future consumption smoothed completely over a lifetime. D) the price of current consumption divided by the price of current saving.
Which statement is true?
A. Poverty has been a problem only since 1933. B. Poverty cannot be inherited. C. There are more poor Americans today than at any other time in our history. D. Poverty is less of a problem today than it was in the early 1960s.