A perfectly inelastic demand would imply what kind of demand curve?
A) horizontal
B) vertical
C) upward sloping
D) downward sloping
Answer: B
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According to the interest-rate-based monetary policy transmission mechanism, an increase in the money supply generates
A) increased spending on consumer goods and services directly, which causes an increase in aggregate demand. B) an increase in aggregate supply since the supply of money is part of aggregate supply. C) lower interest rates, which causes an increase in planned real investment spending and an increase in aggregate demand. D) an increase in nominal GDP and a change in the price level, but no change in real GDP.
Distribution is a major question to be answered by any economic system.
Answer the following statement true (T) or false (F)
The phrase in the text, 'human beings are self-interested, not selfish' means that:
a. people are never selfish. b. people never act in a spiteful or belligerent manner. c. people never act in a fit of rage. d. people contribute to charities and they help others. e. people care only about themselves and their families.
What is the growth in resources when total factor productivity grows by 3.5 percent and the economy grows by 2.7 percent?
a. 0.8% b. -2.7% c. 3.5% d. -0.8% e. 0.6%