Higher prices lead to higher levels of real wealth.
Answer the following statement true (T) or false (F)
False
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If aggregate planned expenditure is greater than GDP, then
A) the consumption function will shift downward to restore the equilibrium. B) a recession will result. C) inventory investment is larger than planned. D) production is too high. E) inventory investment is smaller than planned.
Which of the following is not a solution to the problem of negative externalities due to pollution?
a. Create private property rights. b. Levy pollution taxes. c. Create obligatory controls. d. Reward the production of these products through subsidies. e. Establish strict limits on the amount of pollution allowed.
In the United States, the different categories of money supply measurement are based on:
a. the elasticity of money. b. the liquidity of money. c. the amount of purchasing power. d. the reserve requirements in the banking system. e. the velocity of money.
If Nick consumes only two goods, oranges and plums, and he increases his consumption of oranges, then
a. the price of oranges must have increased b. Nick's income must have increased c. plums and oranges must be complements d. he must reduce his consumption of plums to remain on the same indifference curve e. Nick's MU/P of oranges will now increase