In the above table, dissaving occurs at every level of income below
A) $5,000. B) $7,000. C) $10,000. D) $8,000.
A
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The table above gives the aggregate demand and aggregate supply schedules in Lotus Land
With no changes in aggregate demand or long-run aggregate supply, in long-run macroeconomic equilibrium, the price level will be ________ and real GDP will be ________. A) 120; $400 B) 110; $500 C) 90; $400 D) 100; $600
Four banks are offering the same interest rate of 4%. Where do you invest?
A) Bank A compounds interest on a yearly basis. B) Bank B compounds interest on a monthly basis. C) Bank C compounds interest on a daily basis. D) I am indifferent between banks.
Activists and nonactivists both believe that
a. the self-corrective mechanism of a market economy works quite well. b. macro-policy should seek to minimize economic fluctuations, keep the inflation rate low, and establish an environment consistent with strong economic growth. c. discretionary monetary and fiscal policy can be used successfully to speed the adjustment process and reduce the swings of the business cycle. d. policies that stimulate aggregate demand can reduce the long-term rate of unemployment.
According to the textbook, for most goods and services-foods, beverages, entertainment, etc.-the income elasticity of demand is:
A. larger in the short run than in the long run. B. larger in the long run than in the short run. C. about the same in the short run and in the long run. D. is difficult to differentiate from the short run to the long run.