The theory of liquidity preference is largely at odds with the basic ideas of supply and demand
a. True
b. False
Indicate whether the statement is true or false
Answer: b. False
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In the open-economy ISLM model, the goods market equilibrium condition is
A) output = consumption + investment + government spending. B) output = consumption + investment + government spending - tax. C) output = consumption + investment + government spending + net export. D) output = potential output.
Given the table below, the maximum amount that can be produced using 20 workers is 
A. 26.5 units. B. 442 units. C. 420 units. D. 22 units. E. 530 units.
When the prices of food and gasoline are added to core inflation, we get:
A. headline inflation. B. core deflation. C. hyperinflation. D. adjusted inflation.
Which of the following explains why a firm would be interested in knowing the price elasticity of demand for a good it sells?
A) The price elasticity of demand can be used to determine the impact of changes in income on quantity sold. B) Knowing the price elasticity of demand allows the firm to determine how the cost of producing additional units of the good will change. C) Knowing the price elasticity of demand allows the firm to calculate how changes in the price of the good will affect the firm's total profit. D) The price elasticity of demand allows the firm to calculate how changes in the price of the good will affect the firm's total revenue.