Exhibit 9-5 Keynesian aggregate expenditures model where the MPC is 0.75
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The economy shown in Exhibit 9-5 is:
A. in a recessionary gap.
B. in an inflationary gap.
C. fully employed.
D. substantially underemployed.
Answer: B
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Use the figure below to answer the following question.
The diagram shows three supply curves for apples today. Which of the following would cause the current supply of apples to shift from S1 to S3?
A. an increase in the number of corn farmers B. expectations of lower apple prices in the future C. a decrease in the price of apples in the market D. expectations of higher apple prices in the future
If the nominal interest rate is 2.9 percent and the rate of inflation is 0.6 percent in a given year, then what is the corresponding real rate of return?
A) 3.5 percent B) 2.3 percent C) -3.5 percent D) None of the above.
Briefly define an endogenous variable and an exogenous variable. What variables are endogenous in the classical model? What variables are exogenous
What will be an ideal response?
It takes Heather 1 hour to change the oil in the car and 20 minutes to do the dishes. It takes Zach 1.5 hours to change the oil in the car. For Zach to have a comparative advantage changing the oil it must take him more than ______ minutes to do the dishes
Fill in the blank(s) with correct word