Those who believe in the rational expectations hypothesis advocate ________ policy intervention.
A. limited
B. sporadic
C. continual
D. no
Answer: D
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Lilly Davis has $5 per week to spend on any combination of ice cream and candy. The price of an ice cream cone is $2 and the price of a candy bar is $1. The table below shows Lilly's utility values
Use the table to answer the questions that follow the table. Quantity of Ice Cream Cones Total Utility Marginal Utility Marginal Utility per Dollar Quantity of Candy Total Utility Marginal Utility 1 20 1 20 2 38 2 38 3 52 3 48 4 62 4 54 a. Complete the table by filling in the blank spaces. b. Suppose Lilly purchases 2 ice cream cones and 1 candy bar. Is she consuming the optimal consumption bundle? If so, explain why. If not, what combination should she buy and why?
Equilibrium GDP is equal to
A) autonomous expenditure times the multiplier. B) autonomous expenditure times the marginal propensity to consume. C) autonomous expenditure times the marginal propensity to save. D) autonomous expenditure.
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
Kaitlyn purchased one share of Northwest Energy stock for $200; one year later she sold that share for $400 . The inflation rate over the year was 50 percent. The tax rate on nominal capital gains is 50 percent. What was the tax on Kaitlyn's capital gain?
a. $50 b. $75 c. $100 d. $200