Which of the following statements accurately describes the situation shown?
a. A decrease in the supply of euros shifts the supply curve for euros from S1 to S2.
b. The supply curve for dollars shifts from S1 to S2 due to an increase in the supply of dollars.
c. An increase in the supply of euros shifts the supply curve for euros from S2 to S1.
d. The supply curve for euros shifts from S1 to S2 due to an increase in the supply of euros.
d. The supply curve for euros shifts from S1 to S2 due to an increase in the supply of euros.
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Encouraging formation of monopolies provides firms an incentive to:
A) innovate. B) increase social surplus. C) hire less resources in production. D) decrease deadweight loss.
Marginal utility theory predicts that when the price of one good rises, the demand for another good is a substitute increases. This change occurs because of
A) an increase in the marginal utility per dollar from the substitute good. B) an increase in the marginal utility of the substitute good. C) a decrease in the marginal utility per dollar from the good whose price has risen. D) a decrease in the marginal utility of the good whose price has risen.
During a recession, output declines result in
A) lower unemployment in the economy. B) higher unemployment in the economy. C) no impact on the unemployment in the economy. D) higher wages for the workers.
John Maynard Keynes
A. agreed with classical writers that strong automatic pressures drive market economies to full employment. B. focused on attaining the long-run macroeconomic goal of high, but stable economic growth. C. argued that a market economy might become stuck in a short-run equilibrium in which substantial capital and labor lay idle. D. argued that short-run equilibrium occurs only at full employment.