The multiplier represents the ratio of the total shift in aggregate demand to the:
A. total shift in short-run aggregate supply.
B. initial shift in short-run aggregate supply.
C. initial shift in aggregate demand.
D. total shift in long-run aggregate supply.
Answer: C
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A market economy allocates resources primarily in accordance with orders from government bureaucrats.
Answer the following statement true (T) or false (F)
Lara will agree to a second date with Tom only if, on their first date, Tom is well mannered and well dressed. Lara is using a
a. Screening mechanism b. Signaling mechanism c. All of the above d. None of the above
A person prefers large and small levels of national defense to medium-sized levels of national defense. This person
A. is violating the law of transitivity. B. has single-peaked preferences. C. has multiple-peaked preferences. D. cannot achieve his or her most-preferred outcome.
Refer to the accompanying figure. The opportunity cost of increasing medical care from 200 to 400 units is ________ the opportunity cost of increasing medical care from 400 to 600 units.
A. greater than B. twice as much as C. exactly the same as D. less than