Refer to the information provided in Figure 2.3 below to answer the question(s) that follow.
Figure 2.3Refer to Figure 2.3. Assume that in this society the opportunity cost of sailboats in terms of surfboards is increasing. A graph of this society's production possibility frontier will be represented by Panel
A. A.
B. B.
C. C.
D. D.
Answer: A
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Compare the macroeconomic performances in the 1990s of the following countries under the following exchange-rate regimes: floating exchange rates, Mexico and Brazil; capital control, China and Malaysia; and currency boards, Estonia and Hong Kong;
dollarization, Argentina.
In long-run equilibrium, a perfectly competitive firm produces the output level that minimizes average total cost
a. True b. False Indicate whether the statement is true or false
The U.S. experience with tax cuts and tax increases since 1975 suggests that
a. tax cuts always stimulate consumption spending. b. tax changes have a stable and predictable effect on consumption spending. c. temporary tax changes are less effective than permanent changes. d. tax changes have no effect on consumption spending.
How will an unanticipated decrease in aggregate demand influence equilibrium output in the goods and services market?
a. Output will increase, and the general level of prices will fall. b. Output will increase, and the general level of prices will rise. c. Output will decrease, and the general level of prices will rise. d. Output will decrease, and the general level of prices will fall.