When an economy experiences hyperinflation, it has:
A. extremely long-lasting and painful increases in the price level that encourages economic growth.
B. extremely long-lasting and painful increases in the price level that slows economic growth.
C. a long period of stagnant economic growth, and inflationary tactics are used by the government to raise prices.
D. a long period of low, steady inflation that aids in economic growth.
Answer: B
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
In the figure above, which budget line results in the most real income in terms of compact discs?
A) AD B) BD C) CD D) Real income is equal for all three budget lines.
Refer to Scenario 16.3. What is Sam's marginal rate of substitution of tee shirts for candy at the current distribution?
A) 2. B) 7/5. C) 5/7. D) It is impossible to determine without the prices of each commodity.
Claire has just eaten her second bowl of cereal. We can say:
A. her second bowl likely reduced her total utility. B. her second bowl likely added less to her total utility than the first. C. her third bowl will likely decrease her total utility. D. her third bowl will likely increase her total utility by at least as much as the second.