If C = 200 + 0.5Y and I = 100, then the equilibrium level of income is
A. 175.
B. 300.
C. 400.
D. 600.
Answer: D
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Under the U.S. market system, land and capital goods are owned mainly by
a. the federal government. b. individuals and firms. c. local governments. d. state governments.
On the graph above, suppose the economy is at point 1. Which sequence of points best illustrates the short-run and then long-run impacts of a permanent tax reduction? [Assume that potential output remains constant at .]
A) 2, 4, 1 B) 7, 2, 5 C) 2, 7, 6 D) 7, 8, 1
Explain the difference between the short run and the long run in terms of the number of firms in a competitive market
As the real wage decreases, the quantity of labor demanded ________ and the quantity of labor supplied ________.
A. increases; increases B. decreases; decreases C. increases; decreases D. decreases; increases