The increase in income in response to a fiscal expansion in the IS-LM is:
What will be an ideal response?
less than in the Keynesian-cross model unless the LM curve is horizontal.
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Interest rates in the economy have fallen. How will this affect aggregate demand and equilibrium in the short run?
A) Aggregate demand will rise, the equilibrium price level will fall, and the equilibrium level of GDP will rise. B) Aggregate demand will fall, the equilibrium price level will rise, and the equilibrium level of GDP will fall. C) Aggregate demand will rise, the equilibrium price level will rise, and the equilibrium level of GDP will rise. D) Aggregate demand will fall, the equilibrium price level will fall, and the equilibrium level of GDP will fall.
Fixed exchange rate regimes include each of the following, except:
A. the Bretton Woods exchange rate system. B. exchange rate pegs. C. currency boards. D. dollarization.
The Standard Oil trust
A. behaved "badly" according to the Supreme Court. B. was broken up in 1890. C. was forced by the Supreme Court to give payments on every shipment of oil it refined to its rivals. D. was a multinational corporation.
Each identical consumer has the following demand for golf, q = 100 - p, where q is the number of rounds of golf played per year and p is the price per round. The only golf course in an isolated town incurs a marginal cost of $10 per round of golf. It wishes to charge a membership fee and a fee per round of golf. What price will it set for each fee?
What will be an ideal response?