A gift-giver's efficient number of gifts (to give to a gift-recipient) has fallen from 10 to 8. This could be because
A) the gift-giver's marginal benefit curve for giving gifts shifted down and left.
B) the gift-giver's marginal cost curve of giving gifts shifted up and left.
C) the gift-recipient "fell out" of the gift-giver's utility function.
D) a and b
E) none of the above
D
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An increase in the riskiness of corporate bonds will ________ the price of corporate bonds and ________ the price of Treasury bonds, everything else held constant
A) increase; increase B) reduce; reduce C) reduce; increase D) increase; reduce
If the unemployment rate is below its natural rate, then ________
A) output is above its potential level B) there is excess tightness in the labor market C) wages and prices will rise more rapidly and the AS curve will shift to the left D) all of the above E) none of the above