Government spending on interstate highways, public housing facilities, and defense projects are all ways that the president can
a. close a recessionary gap
b. close an inflationary gap
c. combat inflation
d. shift the aggregate demand curve to the left
e. reverse the paradox of thrift
A
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Another word for elasticity is:
a. responsiveness. b. happiness. c. bonus d. profit. e. surplus.
Where does the money for investment in physical capital come from? It largely comes from:
A. donation by foreign countries. B. government subsidies. C. the savings of ordinary households. D. the reinvestment of funds from businesses.
After being introduced in 1999, the euro
A. increased in value through 2008. B. decreased in value through 2008. C. increased in value through 2000 but then decreased in value through 2008. D. decreased in value through 2000 but then increased in value through 2008.
The Wong family consumes 3 pounds of fish and 5 pounds of chicken per month. The price of fish is $8 per pound and chicken is $4 per pound
a. What is the amount of income allocated to fish and chicken consumption? b. What is the price ratio (the price of fish relative to the price of chicken)? c. Explain the meaning of the price ratio you computed. d. If the Wongs maximize utility, what must the ratio of the marginal utility of fish to the marginal utility of chicken be equal to? e. If the price of chicken rises, will the Wong family consume more chicken, less chicken, or the same amount of chicken? Explain your answer using the rule of equal marginal utility per dollar. What will be an ideal response?