Which of the following statements is true?
A) Comparative statics is a tool that can be used in both optimization in levels and optimization in differences.
B) Marginal analysis is a key tool used while optimizing in levels.
C) Comparative statics involves calculating the incremental cost of moving from one alternative to the next best alternative.
D) Marginal analysis is the comparison of economic outcomes before and after some economic variable is changed.
A
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Goods or services that can be produced only by using unique or rare productive resources tend to have a low elasticity of supply
Indicate whether the statement is true or false
The money created by the banking system when deposits in one bank result in deposits in other banks by way of the bank loan process tends to decrease the banking system's volatility
Indicate whether the statement is true or false
If GDP is too low relative to potential GDP, which of the following is true?
A. Unemployment is higher than normal. B. A recession has just begun. C. Inflation is higher than normal. D. Deflation will occur.
Monetary policy directed at expanding GDP growth would include the following?
A. Selling bonds and increasing the discount rate B. Buying bonds and increasing the discount rate C. Decreasing the discount rate and increasing the reserve requirement D. Decreasing the discount rate and buying bonds