Suppose the economy is currently operating on both the LM curve and the IS curve. Which of the following is true for this economy?
A) Production equals demand.
B) The quantity supplied of bonds equals the quantity demanded of bonds.
C) The money supply equals money demand.
D) Financial markets are in equilibrium.
E) all of the above
E
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Profit is constant along an isoquant.
Answer the following statement true (T) or false (F)
Of the four factors that influence asset demand, which factor will cause the demand for all assets to increase when it increases, everything else held constant?
A) wealth B) expected returns C) risk D) liquidity
Other things constant, when the work opportunities in an occupation are unstable (that is, layoffs are common), the hourly wages of workers in the occupation will tend to be
a. higher than the wages of workers with otherwise similar jobs. b. lower than the wages of workers with otherwise similar jobs. c. below market equilibrium. d. above market equilibrium.
Member countries of the Eurosystem agree to:
A. pursue independent domestic monetary policies based on what is best for their own country, but not all member countries have adopted the euro as their currency. B. share a common monetary policy and use the euro as their currency. C. use the euro as their currency, but each country still pursues an independent monetary policy. D. share a common monetary policy and fiscal policy.