If, when you consume another piece of candy, your marginal utility is zero, then
A) you want more candy.
B) you have not yet reached the point of diminishing marginal utility.
C) you should consume less candy.
D) you have maximized your total utility from consuming candy.
D
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The basic purpose of economic models is to:
a. construct simplifying assumptions about the real world. b. explain reality in all its complexity. c. construct situations where controlled experiments can be carried out. d. provide explanations for, and predictions of the relationship between variables.
Which of the following were not actions taken by the Federal Reserve in order to stimulate the economy during the recession of 2007-2009?
a. decreasing the discount rate b. suspending trading on the major stock exchanges c. massive lending to banks d. open market purchases of assets other than Treasury bills
The ________ approach relies on the right discretionary policy to close the gap through a ________ of the aggregate demand curve
a. passive; decrease b. active; increase c. passive; increase d. active; decrease
When real GDP is in equilibrium there will be no tendency for real GDP to _____ or _____.
Fill in the blank(s) with the appropriate word(s).