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The short-run aggregate supply (SRAS) curve shows the quantity
a. demanded of all goods and services at different price levels, ceteris paribus.
b. supplied of all goods and services at a particular price level, ceteris paribus.
c. supplied of all goods and services at different price levels, ceteris paribus.
d. supplied of GDP at a particular price level, ceteris paribus.
In symbols, the equation of exchange says
a. MP = QV.
b. MQ = PV.
c. MV = PQ.
d. MP = MQ.
In economics, scarcity implies
a. disutility.
b. utility.
c. choice.
d. inefficiency.
e. a, c, and d
The transmission lag is the period that elapses between the time fiscal policy is enacted
and the time it is put into effect.
a. True
b. False
Exhibit 2-1
The opportunity cost of moving from point B to A is
a. 10,000 units of butter.
b. 20,000 units of butter.
c. 50,000 units of guns.
d. the maximum amount of butter that can be produced with available resources.
Exhibit 1-3
According to the data provided in this table, what is the slope of the line between points
A and B, if these data were graphed with X on the horizontal axis and Y on the vertical
axis?
a. -0.40
b. -2.50
c. 0.40
d. 2.50
e. none of the above
A person buys a bond with a face value of $10,000 for $9,325. Each year until the
maturity date the bond buyer receives $750 from the issuer of the bond. The yield on
the bond is
a. 8.04 percent.
b. 7.5 percent.
c. 10.0 percent.
d. 6.75 percent.
e. There is not enough information to answer the question.
M1 is comprised of currency held outside banks + traveler€s checks + __________.
a. credit cards
b. savings deposits
c. gold
d. checkable deposits
e. money market mutual funds
Which of the following founders of the United States used the infant-industry argument
to support trade restrictions?
a. Thomas Jefferson
b. Alexander Hamilton
c. James Madison
d. John Jay
Exhibit 5-2
If the tuition is set at $60 there will be
a. a shortage at 10 a.m. and a surplus at 8 a.m.
b. a surplus at 10 a.m. and a shortage at 8 a.m.
c. equilibrium at both 10 a.m. and 8 a.m. because the price is half-way between their
individual equilibria.
d. none of the above
Exhibit 10-5
When TE is $200 billion, what state is
the economy in?
a. TE < TP, individuals are buying less output than firms produce.
b. TE > TP, individuals are buying more output than firms produce.
c. TE = TP, the economy is in equilibrium.
d. TE < TP, individuals are buying more output than firms produce.
e. TE > TP, individuals are buying less output than firms produce.
Suppose the economy is in a recessionary gap.If government expenditures are currently
$700 billion and tax revenues are currently $450 billion, the (total) budget deficit is
_____________.Assume that economists estimate that if the economy were operating at
full employment then government expenditures would be $600 billion and tax revenues
would be $500 billion.The structural deficit is_________________ and the cyclical
deficit is_______________.
a. $1.15 trillion; $1.1 trillion; $100 billion
b. $400 billion; $300 billion; $100 billion
c. $400 billion; $100 billion; $300 billion
d. $250 billion; $100 billion; $150 billion
Exhibit 9-6
If the economy is self-regulating and currently at point 1, it follows that
a. the AD curve will shift to the right and pass through point 4.
b. the SRAS curve will shift to the left and pass through point 2.
c. the economy is currently operating below its physical PPF and above its institutional
PPF.
d. the SRAS curve will shift to the right and pass through point 3.
