Assuming QF is the full employment equilibrium then in Figure 11.2, if the level of spending is equal to AD1, the AD shortfall would be
A. Equal to YZ.
B. Greater than XZ.
C. Equal to XY.
D. Equal to XZ.
Answer: B
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In the short run, expansionary fiscal policy usually will
A) decrease the price level and decrease real GDP. B) increase the price level and increase real GDP. C) decrease the price level and increase real GDP. D) increase the price level and decrease real GDP.
Patents do not
a. provide firms an incentive to research. b. assign property rights to inventors. c. protect the rights of inventors for their lifetimes. d. internalize externalities.
__________ is the current Chairman of the Board of Governors of the Federal Reserve.
Fill in the blank(s) with the appropriate word(s).
Refer to Table 21.5: Table 21.5QTFCTVCTCAVCMC0 15--1 23 2 43 15 The total cost of 3 units of output in Table 21.5 is
A. $30. B. $23. C. $38. D. $15.