Figure 2-1 illustrates the trade-off for a particular student between time spent studying per week and income per week from working part-time. If this student does not study at all, how much income can they earn?
a.
$0
b.
$40
c.
$80
d.
$100
e.
$120
d
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If there is limited commitment and the government is no better at collecting on its debts than is the private sector, then
A) Ricardian equivalence holds. B) the private sector can benefit from a government loan program. C) Ricardian equivalence does not hold. D) the Fisher relation does not hold.
Economics is the study of:
A. how to invest in the stock market. B. how society uses limited resources. C. the role of money in markets. D. how government officials decide which goods and services are produced.
According to the interest-rate-based monetary policy transmission mechanism, an increase in the money supply will
A. lead to a decrease in investment spending and an increase in real GDP that is equal to the decrease in investment spending. B. lead to an increase in investment spending and a decrease in real GDP that is equal to the increase in investment spending. C. lead to an increase in investment spending and an increase in real GDP which is greater than the increase in investment spending. D. lead to a decrease in investment spending and an increase in real GDP which is greater than the decrease in investment spending.
When the Fed increases the rate of growth of the money supply to jump start the economy, the unemployment type that will be directly affected is the
A. structural unemployment. B. natural rate of unemployment. C. frictional unemployment. D. cyclical unemployment.