Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; higher
C. lower; higher
D. higher; potential
Answer: D
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In the above figure, a negative relationship between x and y is shown in Figure
A) A. B) B. C) C. D) D. E) B and Figure C.
What do economists believe causes sustained inflation?
a. government printing too much money b. cost of living declining too rapidly c. currency supply falling gradually d. popular faith in paper money rising
Assume that the marginal utility from good A is 10 units and that the price of good A is $5 per unit. The marginal utility from good B is 15 units and its unit price is $7. In this situation, a utility-maximizing consumer should
A. consume more of good A. B. consume only good B. C. consume neither good A nor good B. D. consume more of good B.
If the Fed orders a contractionary monetary policy, describe what will happen to the following variables relative to what would have happened without the policy:
a. The money supply b. Interest rates c. Investment d. Consumption e. Net Exports f. The aggregate demand curve g. Real GDP h. The price level