A nation can increase its production possibilities by:
A. Shifting resources to produce more consumer goods and less investment goods
B. Shifting resources from private goods to public goods
C. Improving labor productivity
D. Eliminating unemployment
Answer: C
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When expectations of inflation are revised downward, the short-run Phillips curve: a. shifts rightward. b. becomes steeper. c. shifts leftward
d. becomes flatter.
What is an import quota?
a. a legal limit on the quantity of foreign goods imported b. a tax assessed on foreign goods c. a price limit on foreign goods d. a contract to sell foreign goods to domestic retailers
The following simple model is used to determine the annual savings of an individual on the basis of his annual income and education.
Savings = ?0 + 
0 Edu + ?1Inc + u
The variable ‘Edu' takes a value of 1 if the person is educated and the variable ‘Inc' measures the income of the individual.
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Refer to the above model. If 
0> 0, _____.
A. uneducated people have higher savings than those who are educated
B. educated people have higher savings than those who are not educated
C. individuals with lower income have higher savings
D. individual with lower income have higher savings
The Keynesian portion of the short-run aggregate supply (SRAS) curve
A. is vertical. B. slopes upward. C. slopes downward. D. is horizontal.