As a function of real GDP (real GDP being measured on the horizontal axis), autonomous investment is represented by a(n):
a. U-shaped curve.
b. vertical line.
c. positively sloped line.
d. negatively sloped line.
e. horizontal line.
e
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The efficient quantity of gasoline to sell in Motorland is
A) 1.7 million gallons per month. B) 1.8 million gallons per month. C) 1.6 million gallons per month. D) 1.9 million gallons per month.
Since restored historic buildings convey a positive externality, local governments may choose to
a. regulate the demolition of them. b. provide tax breaks to owners who restore them. c. increase property taxes in historic areas. d. Both a and b are correct.
Every time the Fed buys or sells on the open market, the __________ changes
A) budget deficit B) income tax rate C) money supply D) a and b E) a, b, and c
According to the rational expectations theory
A. anticipation of inflation can cause deflation. B. anticipation of inflation actually causes inflation. C. inflation rates are unrelated to unemployment rates. D. the economic understanding of workers and managers is incomplete, making it unlikely that their inflationary expectations will influence the economy.