In the graph shown, the globally constrained potential output is:
A. the LAS curve shown, but horizontal.
B. the same as the LAS curve shown.
C. to the left of the LAS curve shown.
D. to the right of the LAS curve shown.
Answer: C
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The budget line can shift or rotate
A) only when income changes. B) only when prices change. C) when either income or prices change. D) None of the above, because changes in income and prices do not shift or rotate the budget line.
The branch of economics which studies how households and firms make choices, interact in markets, and how government attempts to influence their choices is called
A) microeconomics. B) positive economics. C) normative economics. D) macroeconomics.
It is possible for the dollar to appreciate against the Japanese yen while depreciating against the British pound
a. True b. False Indicate whether the statement is true or false
When the general price level in our economy increases, which of the following effects does NOT occur?
A. Our net exports will tend to decrease. B. The interest rate will also tend to increase. C. Foreign buyers will buy less of our output, and we tend to import more. D. The purchasing power of people's savings will increase.