The greatest threat to continued growth in the developed countries might be
A. low inflation rates.
B. low interest rates.
C. moderate marginal tax rates.
D. restrictive regulatory policies.
Answer: D
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Once economists take into consideration changes in the expected inflation rate and supply shocks, the Phillips curve
A) only remains useful when explaining the long-run trade-off between unemployment and inflation. B) remains a useful tool for explaining the short-run trade-off between unemployment and inflation. C) is no longer a useful tool for explaining any trade-off between unemployment and inflation. D) accurately explains the short-run and long-run trade-offs between unemployment and inflation.
A rational consumer will always shift a dollar from a good whose marginal-utility-to-price ratio is lower to one whose marginal-utility-to-price is higher
a. True b. False Indicate whether the statement is true or false
The U.S. aggregate demand curve is downward sloping because
a. an increase in the U.S. price level causes an increase in U.S. spending on consumption goods b. at lower U.S. price levels, real wealth decreases, causing a decrease in the quantities of U.S. goods and services demanded c. at lower U.S. price levels, interest rates decrease, causing a decrease in the quantities of U.S. goods and services demanded d. at lower price levels in the U.S., U.S. exports become more attractive abroad, the demand for them increases, causing an increase in the quantities of U.S. goods andservices demanded e. increases in the U.S. price level do not affect American's real wealth
List some benefits of international trade