The U.S. economy was able to achieve full employment with relative price level stability between 1996 and 2000 because aggregate ________.
A. demand increased
B. demand increased and aggregate supply increased
C. supply decreased
D. demand decreased and aggregate supply increased
Answer: B
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In a graph showing the market supply and demand for British pounds in terms of U.S. dollars, the demand-for-pounds curve is downward-sloping because ________.
A. fewer British pounds can be purchased if pounds become less expensive B. more British pounds can be purchased if pounds become less expensive C. fewer U.S. dollars can be purchased if British pounds become less expensive D. more U.S. dollars can be purchased if British pounds become more expensive
Ronnie waits one hour in queue to buy a ticket to a rock concert. The opportunity cost of buying the $28 ticket:
a. is Ronnie's best alternative use of the sum of $28 spent on the ticket. b. is Ronnie's best alternative use of the one hour it took to wait in queue. c. is the revenue of $28 earned by the ticket agent. d. is Ronnie's best alternative use of both $28 and the one hour spent in the queue. e. cannot be measured because there is no opportunity cost associated with consumption.
In a situation where a market failure occurs,
A. any government intervention will improve on the market outcome. B. there is nothing that the government can do to improve on the market outcome. C. government intervention might improve on the market outcome. D. it will always be preferable to have the government intervene in the market.
An endogenous variable is one that
A. is a function of endogenous variables. B. is part of the production function. C. is taken as given. D. is determined within a model.