Is it possible to see gains in a nation's real standard of living without any positive economic growth?
A) No, a nation's standard of living cannot improve without economic growth.
B) Yes, but only if the government prints more money so people feel rich.
C) Yes, if workers can produce the same level of output in fewer work hours, so that more leisure time could push up the real standard of living.
D) None of the above: Economic growth has nothing to do with a nation's standard of living.
C
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The inauguration of a new President often increases the degree of optimism in business firms and households, causing Ap to
A) rise and IS to shift leftward. B) fall and IS to shift leftward. C) fall and IS to increase. D) rise and IS to shift rightward.
Which of the following is a major disadvantage of setting the price of a good below equilibrium and using waiting in line rather than price to ration the good?
a. Compared to price rationing, waiting in line is unfair since it is easier for those with higher incomes to wait in line. b. Waiting in line imposes a cost on the consumer; paying higher prices does not. c. Both waiting in line and higher prices are costly to consumers, but unlike the payment of a higher price, waiting in line does not provide suppliers with an incentive to expand future output. d. Waiting in line benefits consumers at the expense of producers.