The circular flow diagram divides the economy into:
a. Winners and losers.
b. Real sector and nominal sector.
c. Domestic sector and foreign sector.
d. Agricultural sector and non-agricultural sector.
e. Producer sector and consumer sector.
.E
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Income lost by the unemployed is an example of the ________ cost of unemployment, while the additional spending to control crime is an example of the ________ cost of unemployment.
A. psychological; economic B. economic; psychological C. economic; social D. social; psychological
The famous "Kennedy Tax Cut" of 1964 was
(a) meant to stimulate private spending. (b) meant to reduce private investment. (c) meant to restrain consumption. (d) designed to increase the federal deficit.
The Federal Reserve
a. requires little time to change policy and aggregate demand responds quickly.
b. requires little time to change policy but aggregate demand responds slowly.
c. usually requires a substantial time to change policy but aggregate demand responds quickly.
d. usually requires a substantial time to change policy and aggregate demand responds slowly.
Refer to the above figure. Given the indifference map and budget constraint represented above, what would make all possible points attainable for the individual to consume?
A. a decrease in income B. an increase in the price of Good Y C. a decrease in the price of Good X D. an increase in the price of Good X