If policy makers do nothing in response to a recessionary gap, what will happen?
a. a rapid movement toward lower unemployment and higher inflation
b. a rapid movement toward lower unemployment and lower inflation
c. a slow movement toward lower unemployment and higher inflation
d. a slow movement toward lower unemployment and lower inflation
d
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If a consumer purchases any combination of goods and services on his ________, he will exhaust his income completely
A) indifference curve B) budget constraint C) demand schedule D) demand function
One reason you go to college is to improve your employment opportunities and obtain a higher income in the future. In the context of production possibilities, this is most comparable to:
A) producing at any point on the production possibilities curve. B) producing at a point inside the production possibilities curve. C) producing relatively more consumer goods and relatively fewer capital goods. D) producing relatively more capital goods and relatively fewer consumer goods.