Refer to the information provided in Figure 27.2 below to answer the question(s) that follow.
Figure 27.2Refer to Figure 27.2. Planned investment would experience the least amount of crowding out when the aggregate demand curve shifts from
A. AD1 to AD2.
B. AD3 to AD4.
C. AD5 to AD6.
D. The amount of crowding out is the same for all AD curve shifts shown in the figure.
Answer: A
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A firm increased its production and sales because the firm's manager rearranged the layout of his factory floor. This is an example of
A) positive technological change. B) inspired management. C) investment in human capital. D) economies of scale.
In the monetary small open-economy model with a fixed exchange rate, a devaluation of the domestic currency in the absence of any other shocks
A) increases the current account surplus and has no effect on the domestic money supply. B) decreases the current account surplus and has no effect on the domestic money supply. C) increases the domestic money supply and has no effect on the current account surplus. D) decreases the domestic money supply and has no effect on the current account surplus.
Good that cost one half dollar in the U.S. cost one euro in Germany, the real exchange rate would be computed as how many German goods per U.S. goods?
a. one half b. one half the price of the U.S. goods c. one half the number of euros it takes to buy a U.S. dollar d. None of the above is correct.
Refer to the information provided in Figure 16.4 below to answer the question(s) that follow.Los Angeles International Airport (LAX) is located next to Playa Del Rey. The noise from air traffic negatively affects individuals living in Playa Del Rey, however, this cost is not considered by airlines or air travelers. The airlines feel they have a right to use the airspace while the individuals living in Playa Del Rey feel they have the right to quiet. The following diagram depicts the marginal costs and marginal benefits associated with air travel.
Figure 16.4Refer to Figure 16.4. Suppose the government assigns property rights to ________. No negotiations
occur between the parties. The resulting level of air travel is 0 units. A. the airlines B. the residents of Playa Del Rey C. both the airlines and the residents of Playa Del Rey in a 50-50 split D. indeterminate from the given information.