Before the financial crisis of 2008:
A. the 2.5 percent inflation target was seen as a precise target.
B. the 2.5 percent inflation target was seen as an upper bound.
C. inflation was not seen as a target.
D. the 2.5 percent inflation target was seen as a lower bound.
Answer: B
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If autonomous consumption rises, the TE curve shifts __________, the marginal propensity to consume __________, and the TP curve __________
A) upward; rises; shifts downward B) upward; remains unchanged; remains unchanged C) downward; rises; remains unchanged D) upward; remains unchanged; shifts downward E) none of the above
In the absence of discrimination, as human capital investments increase, wages will generally
A. increase or decrease. B. increase. C. decrease. D. not change.
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
Refer to the information provided in Figure 2.6 below to answer the question(s) that follow.
Figure 2.6Refer to Figure 2.6. An increase in the economy's capital stock is represented by a
A. shift from ppf1 to ppf2. B. movement along ppf2. C. shift from ppf2 to ppf1. D. movement along ppf1.