The IS—LM model predicts that a temporary beneficial supply shock
A) increases output, national saving, and investment, but not the real interest rate.
B) increases output, national saving, and the real interest rate, but not investment.
C) increases the real interest rate, investment, and output, but not national saving.
D) increases output, national saving, investment, and the real interest rate.
A
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A disagreement point is
A) an item of contention between the two bargaining players. B) a way of keeping score in a negotiation. C) the point in a negotiation where the players cannot reach an agreement. D) the outcome that occurs if there is no agreement in a bargain.
Use the information in the above table. If Income was evenly distributed, each person would receive
A) $9,000. B) $2,500. C) $1,800. D) $1,000.
An increase in the corporate profits tax will most likely lead to:
a. a decrease in the rental rate of capital in the corporate sector. b. no change in the rental rate of capital in the corporate sector. c. no change in the rental rate of capital in the non-corporate sector. d. an increase in the rental rate of capital in the corporate sector.
Which of the following markets is most likely to exhibit extremely flexible prices?
A. The oil market B. The market for taxi services C. The market for newspapers D. The market for coin-operated laundry