Automatic stabilizers refer to
A) changes in the money supply and interest rates that are intended to achieve macroeconomic policy objectives.
B) the money supply and interest rates that automatically increase or decrease along with the business cycle.
C) changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives.
D) government spending and taxes that automatically increase or decrease along with the business cycle.
D
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Peter's Pizzeria sells both pizzas and wings. It wants to increase the sales of its pizzas. If it decides to increase the price of the wings, it is assuming that
a. the pizza and the wings are substitutes b. the pizza and the wings are complements c. the pizza and the wings are unrelated in demands d. it cannot increase the sales of its pizzas
The euro is the common currency of all European countries
a. True b. False Indicate whether the statement is true or false
Why does the opportunity cost of your college education include money you could have earned working instead of going to college?
A. Because most people who don't go to college work instead. B. Because the best alternative use of your time is working. C. Because people should be productive members of society. D. Because working a full time job takes as much time as going to college.
Refer to Figure 6.4. Suppose that the market is currently in equilibrium and the government decides to impose a maximum price equal to price A in the graph. How will the equilibrium quantity and price change as a result of the price ceiling?
A. It won't. The price ceiling is above the equilibrium, so the market stays at equilibrium. B. It will cause a shortage because at the price ceiling, the quantity demanded exceeds the quantity supplied. C. It will cause a surplus because at the price ceiling, the quantity demanded is below the quantity supplied. D. It won't. The price ceiling is below the equilibrium, so the market stays at equilibrium.