If the price level in an economy increases, other things constant, consumption spending is likely to _____
Fill in the blank(s) with the appropriate word(s).
decrease because the real value of wealth decreases.
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Suppose real GDP is $12.1 trillion and potential GDP is $12.6 trillion. To move the economy back to potential GDP, Congress should
A) lower taxes by an amount less than $500 billion. B) lower taxes by $500 billion. C) raise government purchases by more than $500 billion. D) lower government purchases by $500 billion. E) raise government purchases by $500 billion.
Economists study perfect competition
A. because many markets are perfectly competitive. B. for its descriptive realism. C. to establish a benchmark by which to measure the performance of the economy. D. All of the responses are correct.
Combating the "greenhouse effect" does not create classic free-rider problems
a. True b. False Indicate whether the statement is true or false
By the property of "more is better" and transitivity, indifference curves:
A. can intersect one another only twice. B. do not intersect one another. C. may overlap one another. D. can intersect one another only once.