If a macroeconomic model consists of upward-sloping short-run aggregate supply and downward-sloping aggregate demand, can it possibly generate a constant real GDP with no business cycles over time?
A) No, only a vertical short-run aggregate supply curve can produce that result.
B) No, only a horizontal short-run aggregate supply curve can produce that result.
C) Yes, but the short-run aggregate supply curve must never shift.
D) Yes, if the aggregate demand and short-run aggregate supply curves shift in perfect unison.
D
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Which of these government financing methods is generally the least inflationary?
A) Printing currency B) Borrowing from the banking system C) Borrowing from the central bank D) Borrowing from the non-bank public
Examples of incentive pay include
a. commission sales b. providing onsite parking for employees c. cleaning the worksite with weekly janitorial service d. offering a certain number of sick days
Deadweight loss is the
a. decline in total surplus that results from a tax. b. decline in government revenue when taxes are reduced in a market. c. decline in consumer surplus when a tax is placed on buyers. d. loss of profits to business firms when a tax is imposed.
Which of the following is generally NOT an example of a zero price?
A. Getting a refill of coffee at a restaurant B. Downloading another MP3 from iTunes C. Watching another movie on Netflix D. Sending another text message