What will the investment schedule look like if equilibrium output is $500 billion, spending multiplier is 5, and the government increases purchases by $10 billion. If new equilibrium output increases to $530 billion, the planned investment schedule most likely looks like:
A) down sloping and curved
B) vertical
C) horizontal
D) upward sloping and curved
Answer: A) down sloping and curved
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The aggregate supply curve slopes
A. downward because firms can sell more at lower prices. B. downward because firms can hire more workers at lower prices. C. upward because firms want to hire more workers at higher wage levels. D. upward because firms can hire workers at fixed wages for short-run periods.
From 1980 to 2000 the employment-to-population ratio generally ________ and from 2000 to 2014 the ratio generally ________
A) increased; decreased B) decreased; decreased C) increased; increased D) decreased; increased
An expansionary monetary policy, all else equal, will:
A) depreciate the domestic currency. B) appreciate the domestic currency. C) all of the above. D) none of the above.
A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15, $14, $13, $12, $11, $10, $9, $8, $7, $6, $5 . Eleven sellers are also willing to sell at the same prices. If the market maker wants to make three transactions, what should he bid (the suppliers)A market maker faces the following demand and supply for widgets. Eleven
buyers are willing to buy at the following prices: $15, $14, $13, $12, $11, $10, $9, $8, $7, $6, $5 . Eleven sellers are also willing to sell at the same prices. If the market maker wants to make three transactions, what should he bid (the suppliers) a. $9 b. $8 c. $7 d. $6