If the money supply grows 7% during the year, and people expected the money supply to grow by 5%, what happens to the short-run aggregate supply curve, according to the misperceptions theory?
A) It shifts down.
B) It shifts up.
C) It doesn't shift.
D) It shifts down unless Ricardian equivalence holds, in which case it doesn't shift.
A
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For a syrup producer in central Vermont, profit is maximized at the level of output for which total
A) revenue exceeds total cost by the largest amount. B) revenue exceeds total cost by the smallest amount. C) revenue is maximized. D) cost is minimized. E) revenue equals total cost.
Comparative advantage is directly related to which of the following concepts?
A) productivity B) efficiency C) opportunity cost D) competition E) fairness
In an open economy, the government purchases multiplier will be larger the
A) larger the marginal propensity to consume. B) smaller the marginal propensity to import. C) smaller the marginal income tax rate. D) All of the above are correct.
According to the principle of Rawlsianism:
A. society should place equal weight on the well-being of every individual. B. society should place all weight on the well-being of its worst-off member. C. society should place all weight on the well-being of its best-off member. D. equal division of society's resources among all members of the population is the most equitable outcome.