A simultaneous decrease in both the demand for MP3 players and the supply of MP3 players would imply that
a. both the value of MP3 players to consumers and the cost of producing MP3 players has increased.
b. both the value of MP3 players to consumers and the cost of producing MP3 players has decreased.
c. the value of MP3 players to consumers has decreased, and the cost of producing MP3 players has increased.
d. the value of MP3 players to consumers has increased, and the cost of producing MP3 players has decreased.
c
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
In a market economy, decisions about what to produce are made primarily by
a. the government. b. individuals and firms. c. firms in consultation with the government. d. a central planning committee.
If the Fed buys a T-bill from a commercial bank, how will it pay for the T-bill?
a. It will give the bank new reserves. b. It will write the bank a check. c. It will transfer cash to the bank's vault. d. It will take reserves from another bank.
The general approaches to global poverty reduction include all of the following except
A. Redistribution of incomes within countries. B. Redistribution of incomes across nations. C. An increase in government control of resources. D. Economic growth that raises average incomes.