The economy is at full employment. If aggregate demand increases,
A) an inflationary gap is created and the AS curve shifts leftward as the money wage rate rises.
B) an inflationary gap is created and the AD curve shifts leftward.
C) an inflationary gap is created and potential GDP increases to close the ga
A
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A tax is progressive if the ratio of taxes to income rises as income rises.
Answer the following statement true (T) or false (F)
Steve raises bees to pollinate his orange trees. One of the bees just stung him. This is a(n)
A. social cost. B. common property. C. opportunity cost. D. private cost.
Refer to the information provided in Figure 33.5 below to answer the question(s) that follow.
Figure 33.5Refer to Figure 33.5. The domestic price of oil is $130 per barrel. If the world price of oil is $135 per barrel, this country will
A. export 5 million barrels. B. import 23 million barrels. C. import 9 million barrels. D. export 14 million barrels.
A friend of yours tells you she has an idea for a new product. She believes that once the prototype is built she can sell the rights to the product for $250,000. The problem is she needs $20,000 to build the prototype and she only has $5,000. She asks you to invest $15,000 in the idea and she will give you 75% of whatever amount she obtains when she sells the rights. You have the money available but should be reluctant to provide the money. Why?
What will be an ideal response?