Individuals do not incur any opportunity costs unless there is market failure.

Increased productivity leads to increased aggregate supply.

The fact that automatic stabilizers work without having Congress or the president explicitly intervene is a major advantage.

Assume initially the economy is at full employment. If aggregate demand increases, the aggregate price level and costs will _____, and ultimately, the short-run aggregate supply curve shifts to the _____.

(Figure: Shifts in SRAS and AD) If the economy is at short-run equilibrium point b because of a negative supply shock, the Federal Reserve may focus on price stability and enact a restrictive monetary policy, thus shifting the new equilibrium to point _____. As a result of this, the price level would _____ and real output would _____.

In 2012, the group with the highest unemployment rate in the United States was:

Government policies must often account for the:

If the supply curve shifts leftward and the demand curve also shifts leftward, and if demand shrinks relatively less than supply, then price will:

Which statement is NOT true of economic model building?

If the marginal propensity to save is 0.15, then $15 of every additional $100 of income will be spent on savings.