Given an upward-sloping aggregate supply curve, which of the following is most likely to occur if the Fed pursues restrictive monetary policy, ceteris paribus?
A. The equilibrium price level and output will both decrease.
B. The equilibrium price level and output will both increase.
C. The equilibrium price level will decrease but output will stay the same.
D. The equilibrium output will decrease but the price level will stay the same.
A. The equilibrium price level and output will both decrease.
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Which of the following policies is not aimed at stimulating technological progress?
a. subsidies to public universities. b. tax breaks on stock gains. c. tax breaks on research and development. d. the granting of patents.
The assumption that individuals do NOT intentionally make decisions that would leave them worse off is referred to as
A) the premium assumption. B) the law of comparative advantage. C) the rationality assumption. D) the law of demand.
Economic models relate to
A) people's choices. B) how people think about something. C) group opinions. D) the reasons people give for donating to charity.
A tax on an imported good is called:
a. an export. b. dumping. c. a quota. d. a tariff. e. free trade.