Based on the simple spending multiplier, which of the following will increase real GDP?
a. Decreased government spending
b. Increased business taxes
c. Increased investment spending
d. Decreased consumption spending
c
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According to the simple circular flow concept, whenever planned investment is less than planned saving
a. inventories accumulate. b. output increases. c. prices rise. d. employment increases.
The 2005-2008 Chinese policy with respect to the Yuan has been to
a. allow its currency to float. b. allow its currency to rise in value quickly. c. allow its currency to rise in value slowly. d. allow its currency to fall in value slowly. e. allow its currency to fall in value quickly.
The horizontal demand curve facing an individual firm in a perfectly competitive market: a. violates the law of demand, which states that demand curves slope downward. b. is a reflection of the firm's small size relative to the total market
c. is maintained only with the help of high barriers to entry. d. is a reflection of the inelastic demand for its product.
In the graph shown above, equilibrium price is _______.
A. $25
B. $30
C. $35
D. $40