Consumption possibilities, during a given time period, refer to the
A. Amount by which a country can expand its production possibilities by engaging in international trade.
B. Maximum amount that a country can produce if it imports and does not export.
C. Maximum amount of imported goods and services that a country can consume.
D. Alternative combinations of goods and services that a country could consume in a given period of time.
Answer: D
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If a currency rapidly depreciates, what are the possible negative results to the economy of using contractionary monetary policy to address the depreciation?
What will be an ideal response?
The impact effect is the
A) zero period dynamic multiplier. B) h period dynamic multiplier, h>0. C) cumulative dynamic multiplier. D) long-run cumulative dynamic multiplier.
What is the slope of the line of aggregate expenditure plotted against output in equilibrium?
a. 0.0 b. 0.5 c. 1.0 d. 1.5
If actual GDP is $340 billion and there is a positive GDP gap of $20 billion, potential GDP is:
A. $360 billion. B. $660 billion. C. $320 billion. D. $20 billion.