A contractionary monetary policy is likely to lead to ________
A) lower real interest rates B) lower real wages
C) a lower demand for labor D) a lower supply of labor
C
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Refer to Figure 4.8. If 30 of your friends go to the park and 70 go to the beach,
A) your friends at the beach should switch to the park. B) your friends at the park should switch to the beach. C) your friends at the beach should switch to the park and your friends at the park should switch to the beach. D) your friends should stay where they are.
Refer to Figure 8.8. If this farmer is producing the profit-maximizing level of output, her profit is A) $0. B) $2,800. C) $3,000. D) $12,000.
England has a relatively cool and cloudy climate that is ill suited for grape growing. It can produce 200 units of wine for every 400 units of cloth. Portugal, in contrast, has a relatively warm and sunny climate that is good for growing grapes. It can produce 200 units of wine for every 100 units of cloth. Which country has the higher opportunity cost of producing cloth?
A. England: 2 units of wine for every unit of cloth B. England: 1/2 unit of cloth for every unit of wine C. Portugal: 2 units of wine for every unit of cloth D. Portugal: 1/2 unit of wine for every unit of cloth