A reduction in the inflation rate would make relative prices
a. less variable, making it more likely that resources will be allocated to their best use.
b. less variable, making it less likely that resources will be allocated to their best use.
c. more variable, making it more likely that resources will be allocated to their best use.
d. more variable, making it less likely that resources will be allocated to their best use.
a
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A constitutional amendment is passed that requires the government to have an annually balanced budget in the sense that changes in spending should be matched by equivalent changes in taxes. Should the government desire to increase real GDP by $25 billion and meet the provisions of the law, it
A. could increase spending by $25 billion and reduce taxes by $25 billion. B. cannot possibly reach its objective without breaking the law. C. could increase spending by $30 billion and increase taxes by $25 billion. D. could increase spending by $25 billion and increase taxes by $25 billion.
What two fiscal policy measures do you recommend to remove it?
Recall the Application about productivity in the nation of Latvia in the 1990s to answer the following question(s). According to this Application, in the 1990s EU countries had ________ in the production of all products compared to Latvia.
A. an absolute advantage and a comparative advantage B. an absolute advantage but not a comparative advantage C. a comparative advantage but not an absolute advantage D. neither an absolute advantage nor a comparative advantage
Which of the following shows the feasible combinations of two goods that a consumer could afford given her money income?
A. the budget constraint B. the indifference map C. the price consumption curve D. the income consumption curve