The negative relation between investment spending and the interest rate is what gives the ________ curve its ________ slope
A) IS; upward
B) IS; downward
C) LM; downward
D) LM; upward
B
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The marginal social cost of air quality increases as air quality increases. If the dirtiest production process would create 700 tons of pollutants, then
a. eliminating the first 20 tons of pollution is cheaper than eliminating the last 20 tons b. eliminating the last 20 tons of pollution is cheaper than eliminating the first 20 tons c. more damage will be done by the first 20 tons of pollution than by the last 20 tons d. more damage will be done by the last 20 tons of pollution than by the first 20 tons e. the optimal level of air quality is to reduce pollution by 700 tons
Refer to the above figure. The market clearing price is
A. $2. B. $6. C. $8. D. $10.
Economists agree that the cause of the slow economic growth during the 1970s was the tight fiscal policy.
Answer the following statement true (T) or false (F)
If the economy is at the point where the short-run Phillips curve intersects the long-run Phillips curve,
a. unemployment equals the natural rate and expected inflation equals actual inflation. b. unemployment is above the natural rate and expected inflation equals actual inflation. c. unemployment equals the natural rate and expected inflation is greater than actual inflation. d. None of the above is necessarily correct.