Explain what are the factors that shift the DD Schedule
What will be an ideal response?
A change in government demand, change in Taxes, a change in investment, change in domestic prices, change in foreign prices, changes in the consumption function and a demand shift between foreign and domestic goods.
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Specialization and division of labor are made easier by the existence of money.
Answer the following statement true (T) or false (F)
In the Keynesian model in the short run, an increase in the money supply will cause
A) an increase in output and a decrease in the real interest rate. B) a decrease in the real interest rate but no change in output. C) an increase in the real interest rate and an increase in output. D) no change in either the real interest rate or output.
The above diagram shows the short-run average total cost curves for five different plant sizes of a firm. The position of these five curves in relation to one another reflects:
A. the law of diminishing returns. B. the law of constant costs. C. the effect of fixed costs on ATC as output increases. D. economies and diseconomies of scale.
Refer to the above figure. Which one of the following statements is TRUE with regard to the economy depicted in the graph?
A. Starting from point A, this economy does not incur any opportunity cost in producing more wool. B. In moving from point A to point B, the economy is experiencing economic growth. C. Starting from point A, this economy does not incur any opportunity cost in producing more bread. D. In moving from point A to point B, the economy produces 30 additional bales of wool at an opportunity cost of 250 loaves of bread.