If an increase in the price of Good X causes a decrease in the demand for Good Y, we can conclude that:
a. Goods X and Y are complements.
b. Goods X and Y are substitutes
c. Goods X and Y are normal goods.
d. the price of Good Y will increase.
a
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Which of the following policies followed by the Clinton administration were not Keynesian policies?
a. Reducing the budget deficit during a strong expansion. b. Concentrating tax increases on upper income households. c. Attempting to increase government spending in 1992 when the U.S. economy was below its natural rate of output. d. Adjusting capital gains taxes for inflation in order to encourage savings.
Which of the following statements best describes the level of potential output in the U.S.?
A. It has been decreasing since 1999 B. It never changes year to year C. It usually increases year to year D. It is very erratic year to year
Argentina's financial crisis was due to
A) poor supervision of the banking system. B) a lending boom prior to the crisis. C) fiscal imbalances. D) lack of expertise in screening and monitoring borrowers at banking institutions.
Along an indifference curve,
A. the marginal utility of all items is equal. B. the prices of all goods are equal. C. the total satisfaction is the same. D. the marginal utility/price ratios of all items are equal.