If the aggregate supply curve shifts outward, then unemployment
a. and inflation will both decrease.
b. and inflation will both increase.
c. will increase and inflation will decrease.
d. will decrease and inflation will increase.
a
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In the figure above, when the market is unregulated and in equilibrium, the deadweight loss is ________ thousand per month
A) $250 B) $125 C) $150 D) $50 E) zero
Refer to Figure 14.1. Assume that the economy is originally in equilibrium where real GDP equals potential GDP
Other things equal, an increase in the target inflation rate would best be represented as a movement from ________ in the short run and ________ in the long run. A) point Y to point X; point X to point Y B) point Y to point X; will remain at point X C) point Y to point Z; remain at point Z D) point Z to point X; point X to point Z
The sum of the marginal utilities of a good, at any consumption level
a. cannot be measured b. adds up to total utility c. adds up to maximum utility d. is negative because of the law of diminishing marginal utility e. is zero because marginal utility eventually becomes negative, canceling the positive values of marginal utility
The principle of diminishing returns to labor is based on the:
A. principle of increasing opportunity cost. B. scarcity principle. C. cost-benefit principle. D. principle of comparative advantage.