An answer to the question "For whom" determines:
A) tastes and preferences.
B) how resources are combined in production.
C) the kinds and quantities of goods produced.
D) who gets the goods and services produced.
Ans: D) who gets the goods and services produced.
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Suppose an initial increase in government expenditure increases output by $50,000. If the size of the multiplier is 2.5, the size of the initial increase in government expenditure was _____
Fill in the blank(s) with the appropriate word(s).
In recent decades:
A. all countries classified as DVCs have had little or no economic growth. B. some nations classified as DVCs have grown rapidly while others have grown very slowly or not at all. C. all countries classified as DVCs have experienced rapid economic growth and rising living standards. D. all countries classified as low-income DVCs have had declining per capita GDPs.
If the economy has been experiencing high inflation, as it was in the late 1970s, sharply reducing that inflation rate through monetary policy (as Paul Volcker did) may
A. increase demand for expensive items like cars and houses. B. produce a recession in the short run. C. increase short-run economic growth, triggering an economic expansion. D. reduce the unemployment rate in the short run.
In the above figure, the short-run aggregate supply curve is SAS1. If the prices of resources fall, there is
A) an upward movement along SAS1. B) a downward movement along SAS1. C) a shift to SAS0. D) a shift to SAS2.