An intended goal of contractionary fiscal policy and a tightening of monetary policy is
A. an increase in the price level.
B. an increase in interest rates.
C. a decrease in the level of aggregate output.
D. a decrease in the unemployment rate.
Answer: C
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Stuck in Cleveland You purchased a roundtrip ticket to a friend's wedding in Cleveland on Saturday for $400, but on Sunday you discover your return flight is canceled due to weather. The airline will not be able to get you back home until late Monday but Greyhound has an overnight bus route that arrives at 6:00am Monday for $60 . What is the opportunity cost of missing work on Monday?
A system of transferable pollution rights: a. increases the quantity of pollution generated
b. provides firms with an incentive to develop new pollution-abatement technologies. c. is not as cost-effective in reducing pollution as a system based on compliance standards. d. is characterized by none of the above.
Which of the following is most important for the achievement of higher income levels and living standards?
a. an increase in total employment b. increases in government spending that create jobs c. production of additional goods and services that people value highly relative to the cost of their production d. restriction of imports that expand employment in the protected industries
In a market economy, the government's power to coerce can
What will be an ideal response?