Suppose that IS and LM intersect at full-employment output. A leftward shift of LM will be followed by a __________ price level that shifts LM to the __________ in a return to full employment
A) rising; right
B) rising; left
C) falling; right
D) falling; left
C
You might also like to view...
Nash equilibrium is:
a. where one player maximizes his payoff and the other doesn't b. when each player's strategy is the best response to the other player's strategy c. where the outcome is always efficient d. difficult to determine
In order to compare benefits today with future costs, we need to know:
A. the interest rate. B. the rate of inflation. C. the uncertainty associated with future benefits and costs. D. All of these statements are true.
Abstraction can be thought of as
a. ignoring reality in order to build theory. b. omitting unimportant details in order to understand complex phenomena. c. creating absurdity in order to explain simplicity. d. assuming complexity when simplicity will do. e. stylizing reality rather than analyzing cause and effect.
Refer to the information provided in Figure 4.4 below to answer the question(s) that follow.
Figure 4.4Refer to Figure 4.4. At the world price of $125 per barrel of oil, the United States imports ________ million barrels of oil per day.
A. 4 B. 6 C. 8 D. 10