Use the following information to answer the next question.C = A + .75(Y - T)A = $900I = $600G = $400T = $400NX = -$200What is the equilibrium level of real GDP?
A. $5,600
B. $8,000
C. $5,200
D. $7,200
Answer: A
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Aggregate expenditure in the U.S. economy includes spending for U.S. output by
a. households and businesses, but not governments. b. households, businesses, and the federal government, but not state and local governments. c. households, businesses, and all governments except foreign ones. d. households, businesses, and governments, both domestic and foreign.
When a firm increases output and accepts a lower price to keep new firms from entering, it is engaging in:
A. limit pricing. B. cartel behavior. C. collusion. D. price fixing.
Unrestricted entry and exit into the market is found in
A) perfect competition and monopolistic competition. B) perfect competition and oligopoly. C) monopolistic competition and oligopoly. D) perfect competition, monopolistic competition and oligopoly.