War can be expected to do all of the following things to an economy except
a. reduce the labor supply
b. reduce the capital stock
c. shift the production possibilities curve inward
d. reduce technological knowledge
e. reduce roads, bridges, and railroad networks
D
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If home prices are falling, consumers purchasing a home will find their purchasing power of money has increased. This benefit to consumers is called the
A) home equity effect. B) inflation effect. C) wealth effect. D) multiplier effect.
If producers have an expectation of higher future prices, the supply of the good that is currently available
A) will be all that is produced. B) will decrease. C) will not change. D) will increase.
The level of aggregate output and income where there is a balance between spending and production decisions and where the economy moves toward is called:
A) disequilibrium level of output and income. B) equilibrium level of output and income. C) disequilibrium level of employment. D) none of the above.
Many car owners and car dealers describe their different cars for sale in the local newspapers and list their asking price. Many people shopping for a used car consider the different choices listed in the paper
The market for used cars could be described as A) relatively competitive. B) perfectly competitive. C) non-competitive. D) having high transaction costs.