When does a surplus occur?
What will be an ideal response?
A surplus occurs when the price is above the equilibrium price. When the price exceeds the equilibrium price, the quantity supplied is greater than the quantity demanded.
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The long-run Phillips curve is ________ than the short-run Phillips curve
A) flatter B) steeper C) more volatile D) less stable
If the dollar depreciates relative to the Mexican peso,
A) U.S. exports to Mexico become more expensive. B) U.S. exports to Mexico become less expensive. C) Mexican imports to the United States become less expensive. D) The value of Mexican imports to the United States does not change, but the value of U.S. exports to Mexico increases.
From a point inside the production possibility frontier, a. more of one good can be produced only by sacrificing some output of another good
b. it is possible to increase production of both goods. c. it is impossible to increase production of either good with current resources and technology. d. increased output of both goods can only occur if the production possibility curve shifts outward.
The slope of the aggregate expenditure curve equals the change in
a) planned expenditure divided by the change in real GDP b) autonomous expenditure divided by the change in real GDP c) government expenditure divided by the change in real GDP d) real GDP divided by the change in planned expenditure