Fiscal policy is enacted through changes in
A. unemployment and inflation.
B. the supply of money and foreign exchange.
C. taxation and government purchases.
D. interest rates and the price level.
Answer: C
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In the table above, country B is producing 4 units of X and 6 units of Y. For country B, the opportunity cost of producing an additional unit of Y is
A) 1/2 unit of X per unit of Y. B) 2/3 unit of X per unit of Y. C) 2 units of X per unit of Y. D) 3 units of X per unit of Y.
As the costs associated with deposit outflows ________, the banks willingness to hold excess reserves will ________
A) decrease; increase B) increase; decrease C) increase; increase D) decrease; not be affected
The cross price elasticity of demand is measured by the
A. percentage change in the price of one good divided by the percentage change in the demand for another good. B. percentage change in the quantity demanded of one good divided by the percentage change in quantity demanded of another good. C. percentage change in the demand for one good divided by the percentage change in price of another good. D. percentage change in the price of one good divided by the percentage change in price of another good.
Refer to the information provided in Figure 26.7 below to answer the question(s) that follow.
Figure 26.7Refer to Figure 26.7. The level of aggregate output that can be sustained in the long run without inflation
A. is $400 million. B. is $700 million. C. is $800 million. D. cannot be determined from this information because aggregate demand is not given.