In 2000, many economists believed that the most serious macroeconomic problem confronting the U.S. economy was an inflationary gap. Which policies would be effective in dealing with this problem?
A. Increase transfer payments.
B. Increase government purchases.
C. Decrease personal income taxes.
D. Increase personal income taxes.
Answer: D
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Empirical evidence shows that the short-run Phillips curve was vertical during the 1950s and 1960s
Indicate whether the statement is true or false
For a country that is considering the adoption of either a tariff or an import quota on a particular good, an important difference is that
a. an import quota has no effect on consumer surplus, while a tariff decreases consumer surplus. b. an import quota has no effect on producer surplus, while a tariff decreases producer surplus. c. a tariff raises total surplus, while an import quota does not. d. a tariff raises revenue for that country's government, while an import quota does not.
What is the difference between basic research and applied research? Provide one example of each.
What will be an ideal response?
As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases. B. initially decreases, then increases. C. decreases. D. initially increases, then decreases.