Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1.
B. P4 and Y2.
C. P5 and Y1.
D. P5 and Y2.
Answer: D
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The table above describes the market for paper. The production of paper produces pollution. There are no external benefits. What is the efficient amount of paper?
A) 10 tons per week B) 60 tons per week C) 40 tons per week D) 30 tons per week
If expected inflation is constant and the nominal interest rate increased 3 percentage points, the real interest rate would
a. increase 3 percentage points. b. increase, but by less than 3 percentage points. c. decrease, but by less than 3 percentage points. d. decrease by 3 percentage points.
One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money. B. by increasing government spending. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.
Refer to the information provided in Table 22.3 below to answer the question(s) that follow. Table 22.3
Refer to Table 22.3. The unemployment rate is
A. 2.8%. B. 5%. C. 5.3%. D. 7.2%.