In the macroeconomics long run...
What will be an ideal response?
-real GDP = potential GDP
-the economy is at full employment
-regardless of the price level, the economy is producing at potential GDP
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When the Fed raises the federal funds rate, the consumption expenditure ________ and investment ________
A) increases; increases B) decreases; decreases C) does not change; does not change D) does not change; decreases E) increases; decreases
In the fooling model's AD/SAS/LAS diagram, short-run equilibria to the left of the LAS curve require the price level to be
A) above what workers expect. B) above what firms expect. C) below what workers expect. D) below what firms expect.
The price for tickets of a sold-out event increase by 30% but quantity sold remains unchanged. The price elasticity of demand equals
A) 0. B) 1. C) infinity. D) Cannot be determined.
A student was heard to remark, "Even though I am certain to fail this course, I cannot withdraw from it since it is too late to get back my tuition." Use one or more "Ideas for Beyond the Final Exam" to analyze this reasoning