Which of the following is true?
A. A flat dynamic aggregate demand curve corresponds to a flat monetary policy reaction curve and means that supply shocks will create small changes in current output.
B. A flat dynamic aggregate demand curve corresponds to a steep monetary policy reaction curve and means that supply shocks will create large changes in current output.
C. A flat dynamic aggregate demand curve corresponds to a steep monetary policy reaction curve and means that supply shocks will create small changes in current output.
D. A flat dynamic aggregate demand curve corresponds to a flat monetary policy reaction curve and means that supply shocks will create large changes in current output.
Answer: B
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Although all points on the PPF are efficient, that alone does not tell us which point is "best" for the society
a. True b. False Indicate whether the statement is true or false
The wage rate is determined by
A. the interaction of supply and demand in the market. B. the substitution and income effects of supply. C. the U.S. government in all circumstances. D. None of the choices are correct.
Tyrone is reviewing his income and expenses for the two previous years. He notes that he made $7,200 more in the second year than in the first year and he spent $2,400 more in the second year than in the first year. What is his marginal propensity to consume?
a. 7 percent b. 33 percent c. 67 percent d. 333 percent
Harry's Pepperoni Pizza Parlor produced 10,000 large pepperoni pizzas last year that sold for $10 each. This year Harry's again produced 10,000 large pepperoni pizzas (identical to last year's pizzas) but sold them for $12 each. Based on this
information we can conclude that Harry's production of large pepperoni pizzas this year: A. increased nominal GDP by $20,000 but left real GDP unchanged. B. increased nominal GDP by $120,000 and increased real GDP by $100,000. C. left nominal GDP unchanged but increased real GDP by $20,000. D. increased nominal GDP by $120,000 but left real GDP unchanged.