The two channels through which monetary policy can influence behavior in the goods market are
A. government spending and consumption.
B. taxation and investment.
C. investment and government spending.
D. investment and consumption.
Answer: D
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What effect would economic weakness in Europe due to a sovereign debt crisis have on the U.S. economy?
A) IS shifts to the right B) IS shifts to the left C) potential GDP increases D) potential GDP decreases
In economics, the demand for a good refers to the amount of the good people: a. would like to have if the good were free
b. will buy at various prices. c. need to achieve a minimum standard of living. d. will buy at alternative income levels.
A set of indifference curves that are only slightly bowed inward represent goods that could best be described as
a. perfect substitutes. b. perfect complements. c. very close substitutes. d. very close complements.
Explain the two main methods used to measure GDP.
What will be an ideal response?