A consumer is willing to purchase a product up to the point where
A) he spends all of his income.
B) the marginal benefit is equal to the price of the product.
C) he is indifferent between consuming and saving.
D) the quantity demanded is equal to the quantity supplied.
B
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When the aggregate demand curve shifts ________ than the long-run aggregate supply shifts rightward, the result will be inflation
A) rightward at a faster rate B) leftward at a slower rate C) leftward at the same rate D) rightward at a slower rate
Refer to the scenario above. Which of the following problems is likely to arise in the market for used cell phones in Barylia?
A) The tragedy of the commons B) The paradox of thrift C) Adverse selection D) Free-rider problem
Which of the following is not an assumption made by the dynamic model of aggregate demand and aggregate supply?
A) The short-run aggregate supply curve shifts to the right except during periods when workers and firms expect higher wages. B) The aggregate demand curve shifts to the right during most periods. C) Aggregate demand and potential real GDP decrease continuously. D) Potential real GDP increases continuously.
In 1991 the unemployment rate in the United States rose to 7.1 percent. This is ________ the unemployment rate reached in the depths of the Great Depression
A) about two percentage points more than B) roughly equal to C) about three percentage points less than D) about half of E) less than one-third of