Complements
What will be an ideal response?
two goods that are bought and used together.
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When the Federal Reserve wants to slow inflation, it
A) lowers the federal funds rate. B) increases taxes on interest income. C) raises the federal funds rate target. D) increases aggregate income, output, and employment. E) cuts the federal funds rate target aggressively to almost zero.
Which of the following is an appropriate fiscal policy prescription for the government to follow?
A. Deficit reduction during a recession. B. Deficit reduction during a war. C. Deficit reduction when there is excess AD. D. Deficit expansion in an inflationary gap.
If an individual's total utility from consuming two goods increases, then there must be
A) a downward rotation of the individual's indifference curve. B) an inward rotation of the individual's indifference curve. C) an outward shift of the individual's indifference curve. D) an inward shift of the individual's indifference curve.
Refer to the information for this hypothetical economy provided in Table 20.2 below to answer the question(s) that follow.Table 20.2 2014 2015 2016QuarterIIIIIIIVIIIIIIIVIIIIIIIVOutput98949010210510811010397949090Refer to Table 20.2. In this economy, a contraction existed around the
A. fourth quarter of 2014 to the fourth quarter of 2015. B. first quarter of 2014 to the third quarter of 2014. C. first quarter of 2015 to the fourth quarter of 2015. D. third quarter of 2016 to the fourth quarter of 2016.