In the fixed-price Keynesian model, what would be the impact of an increase in aggregate expenditure on the aggregate demand curve and real GDP?
a. The aggregate demand curve would shift rightward and real GDP would increase.
b. The aggregate demand curve would shift leftward and real GDP would decrease.
c. The aggregate demand curve would shift rightward and real GDP would decrease.
d. The aggregate demand curve would shift leftward and real GDP would increase.
e. The aggregate demand curve and real GDP would both remain constant.
a
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Open market operations generally involve
A) the Fed making discount loans to depository institutions. B) the Fed buying and selling common stock in order to affect the liquidity of the stock market. C) the Fed buying and selling U.S. government securities. D) private investors buying and selling securities directly on exchanges, rather than through brokers.
The common ownership of natural resources frequently leads to
(a) an efficient resource allocation. (b) an even distribution of resources. (c) an uneven distribution of resources. (d) a productive use of resources.
Excludability matters because it:
A. allows owners to set an enforceable price on a good. B. allows consumers to control the price of a good. C. creates a perceived scarcity that allows the seller to keep the price artificially high. D. creates a perceived scarcity that causes buyers to have an inelastic demand for the good.
An inward shift in the entire production possibilities frontier
A. represents economic growth. B. means that the economy can produce more of both goods. C. takes place if there is an expansion in the labor force. D. means that previous levels of production are now unobtainable.