How much is the marginal propensity to save when disposable income rises from $3 trillion to $4 trillion?
A. 0
B. .25
C. .5
D. .75
C. .5
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Compared to long-term unemployment, short-term unemployment is more likely to be:
A. frictional unemployment. B. structural unemployment. C. a result of minimum-wage laws. D. a result of union activity.
Suppose that one firm produces a product that results in negative external costs to society. This information suggests that
A) resources are under-allocated to the firm. B) the equilibrium market price of the product includes the external costs borne by society. C) resources are over-allocated to the firm. D) at the market price, quantity demanded is less than quantity supplied.
A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only. B. aggregate demand curve only. C. aggregate demand curve, and the short-run aggregate supply curve would shift in response. D. short-run aggregate supply curve and the long-run aggregate supply curve.
Short-term securities are usually called ________ and long-term securities are usually called ________.
A. loans; notes B. bills; bonds C. bonds; stocks D. notes; bills