Which of the following statements would be true of an economy that can be characterized as being to the left of the IS curve?
A) There is an excess demand for commodities at the existing interest rate.
B) There will be a tendency for the level of output to decrease.
C) There is an excess supply of commodities at the existing interest rate.
D) There will be a tendency for interest rates to fall.
A
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To graph a relationship among several variables, we hold all but ________ variable(s) constant and use the ________ assumption
A) one; scarcity B) two; ceteris paribus C) three; scarcity D) one; ceteris paribus E) one; absence of trend
Which of the following is TRUE?
A) APC + MPS = 1 B) MPC + MPS = 1 C) 1 + APC = APS D) APC - APS = 1
Profit maximizing firms in competitive industries with free entry and exit face a price equal to the lowest possible
a. marginal cost of production. b. fixed cost of production. c. total cost of production. d. average total cost of production.
Is it possible that deficits do not burden future generations?