According the traditional Keynesian approach, an increase in government spending is effective in raising real Gross Domestic Product (GDP) if
A. Ricardian equivalence occurs, regardless of the price level.
B. the price level is flexible.
C. the price level does not exist.
D. the price level is fixed.
Answer: D
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In the above figure, the monopolistically competitive firm makes an economic profit of
A) $0. B) between $0 and $50 per day. C) between $50.01 and $100 per day. D) greater than $100.01 per day.
________ means the supply curve has shifted to the right, while ________ refers to a movement along a given supply curve in response to an increase in price
A) An increase in supply; an increase in quantity supplied B) A decrease in supply; a decrease in quantity supplied C) A decrease in supply; an increase in supply D) An increase in supply; a decrease in supply
A widget costs $50 in the US and CAD$53 in Canada. The current exchange rate is 1USD=1.09CAD. Given purchasing power parity, the Canadian dollar would_______to equilibrate prices
a. Appreciate b. Depreciate c. Not change d. None of the above
An example of a public good that the government has made excludable is:
A. city buses. B. sewer systems. C. police protection. D. national defense.