Refer to the above figure. Which of the graphs is consistent with the Keynesian short-run aggregate supply curve?
A) Graph A B) Graph B C) Graph C D) Graph D
B
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The crowding-out effect refers to the tendency of
a. the additional borrowing accompanying larger budget deficits to increase interest rates and reduce private spending. b. higher future taxes accompanying budget deficits to reduce private consumption. c. the inflation rate to rise when the unemployment rate is low. d. increases in private savings to reduce interest rates and, thereby, crowd-out government expenditures.
Which of the following is included in the aggregate demand for goods and services?
a. consumption demand b. investment demand c. net exports d. All of the above are correct.
Fundamental forecasters assume that if current exchange rates reflect all facts in the market, then under similar circumstances, future rates will follow the same patterns.
a. true b. false
Which statement is true?
A. This firm is in the short run.
B. This firm is in the long run.
C. This firm may be in either the short run or the long run.
D. It cannot be determined if this firm is in the short run or the long run.