At a point on a production possibilities curve, opportunity cost of more capital goods today is
A) fewer capital goods in the future.
B) fewer consumer goods in the future.
C) fewer consumer goods today.
D) more unemployed resources in the future.
C
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The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. In short-run equilibrium, there is ________
A) an inflationary gap of $100 B) a recessionary gap of $100 C) a recessionary gap of $200 D) an inflationary gap of $200
Which of the following would be most likely to induce Congress and the president to conduct contractionary fiscal policy? A significant
A) decrease in oil prices. B) increase in labor productivity. C) increase in inflation. D) decrease in real GDP.
New technology that increases labor productivity will
a. lower the wage rate b. decrease the demand for labor because fewer workers are needed c. decrease the supply of labor because fewer workers are needed d. increase the demand for labor because the MPP curve shifts to the right e. decrease the demand for labor because the MPP curve shifts to the left
________ analysis addresses the question of whether a policy should be used, while ________ analysis addresses the economic consequences of a particular policy.
A. Positive; normative B. Fiscal; monetary C. Monetary; fiscal D. Normative; positive