Tag: Economics – Others

Fixed resources determine the timeframe and scale of production. The short run is the period of time in which fixed resources remain constant, while the scale of production is the increasing volume of fixed resources that can generate a given maximum output.
a. True
b. False

Question 5
If a decrease in the marginal tax rate leads to a rise in tax revenues thenthe arithmedic effect dominutes the incenetre effoctthe arithmetic effect is absent.the incentive effect is absent.the incentive effect dominates the arithmetic effect.

Suppose the foreign central bank increases its interest rate i^f (assume that before the change i=i^f). What happens to the IPR curve (how does it shift) and the exchange rate E (does the exchange rate appreciate or depreciate)? (Hint: Refer to the interest parity relation.)

Suppose that an economy has only two consumers. Consumer X’s inverse demand curve isP=8-Qx, and Consumer Y ‘s inverse demand curve is P=12-3Qy.a. Draw the individual demand curves of consumers X and Y .b. Derive the total demand function for this economy. Write it in

In the Solow model, the steady-state growth rate of income per worker:
A. Equals the growth rate of productivity.
B. Equals the sum of the growth rates of productivity and population.
C. None of the above.
D. Is negative due to the diminishing marginal productivity of capital.

A patient’s arterial blood gas results are as follows: pH7.36,pCO285mmHg.HCO3-47mmolL. These values are consistent with:
a. compensated respiratory acidosis
b. uncompensated respiratory alkalosis
c. compensated nonrespiratory acidosis
d. uncompensated nonrespiratory alkalosis

An inflation shock that shifts the short-run aggregate sucply curve leftward and leaves the long-run susply curve unchanged means the economys potensal level of output witMultiple Choiceincrease:not change.secrease.Secrease only if monetay policymakars sa not respond

If an economy is experiencing a positive output gap, this implies that
Real output has decreased below the natural level/full employment level
Pesl output has incressed above the natural level/full emplovment level
The price level is rising
The price level is falling
B and C above

27. If aggregate output lies below potential output, then an appropriate fiscal policy would be to increase curve to thea. government purchases; ( A D ); rightb. government purchases; ( A D ); leftc. transfer payments; AS; rightd. tax rates; ( A D ); right

Categorize each of the following examples as M1 or M2. If an example belongs in both, be sure to check both boxes.
Teresa invested $7,000 in a 3-year certificate of deposit (CD)
M1
M2
The $2,540 in Lorenzo’s savings account
M1
M2
Sam has $25,000 in a money market mutual fund
M1
M2