If the proportion of GDP that people choose to hold in the form of money balances is 0.25, then a $100 increase in the money supply will lead to a rightward shift in the LM curve in the amount of
A) $400.
B) $ 25.
C) $ 75.
D) $100.
A
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The figure above shows Diane's demand curve for soda. The price of a soda is $1.00. Diane's consumer surplus from her 15th soda is
A) $0.00. B) $0.50. C) $1.00. D) $1.50. E) $2.50.
According to classical economists, the government should increase government purchases when
A) the benefits of the spending exceed the costs. B) the economy is in a recession. C) the economy is likely to go into a recession in the next six months to a year. D) inflation is lower than its targeted level.
John Steinbeck's Cannery Row describes a character who takes his own life because of poor job prospects. If he was an unemployed person who gave up looking for work, he would be considered:
a. chronically unemployed. b. a discouraged worker. c. a member of the labor force. d. frictionally unemployed.
Refer to the above figure. Diseconomies of scale exist
A. over the entire range of output. B. up to output Q2. C. from output Q2 to Q5. D. after output Q5.