The leader of a federal political party made the following campaign promise: "my administration will increase national defense without requiring sacrifices elsewhere in the economy." the promise can be kept if:
A. the economy moves along the production possibilities in the direction of a greater quantity of defense.
B. the economy moves from a point inside the production possibilities curve toward a point on the production possibilities curve.
C. the production possibilities frontier shifts outward due to an improvement in technology.
D. either b) or c) occurs, but not as a result of a)
D. either b) or c) occurs, but not as a result of a)
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As we move down a straight-line demand curve, the price elasticity becomes
a. larger. b. smaller. c. larger, then smaller. d. smaller, then larger.
Assuming that the SRAS curve is upward sloping, which of the following statements represents a correct and sequentially accurate economic explanation?
A) The demand for bonds falls, the price of bonds falls, the interest rate rises, investment spending declines, the AD curve shifts to the left, the price level declines and Real GDP decreases. B) The demand for bonds rises, the price of bonds rises, the interest rate rises, investment spending declines, the AD curve shifts to the left, the price level declines and Real GDP decreases. C) The supply of bonds rises, the price of bonds falls, the interest rate falls, investment spending rises, the AD curve shifts to the right, the price level declines and Real GDP decreases. D) The supply of bonds falls, the price of bonds rises, the interest rate falls, investment spending rises, the AD curve shifts to the right, the price level declines and Real GDP increases.
The period of declining growth in real GDP between the peak of the business cycle and the trough is called a(n):
A. recessionary phase. B. expansionary. C. recovery phase. D. stationary phase.
If a monopolist discovers that it is operating at a level of output where price is less than average variable costs, it will continue to operate in the short run.
Answer the following statement true (T) or false (F)