Where does the point of equilibrium fall on this graph?
a. at Y1 on the line marked Y = AE
b. at Y2 on the line marked AE = C + I + G + NX
c. at Y* where the two lines intersect
d. nowhere
c. at Y* where the two lines intersect
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During a severe recession, appropriate economic policy might include
A. An open market purchase by the Fed, a decrease in the tax rates, or a decrease in the budget deficit. B. An open market purchase by the Fed, a decrease in the discount rate, or a decrease in government regulation. C. An open market sale by the Fed, a decrease in the discount rate, or an increase in the budget deficit. D. A decrease in government spending, a decrease in the discount rate, or a decrease in government regulation.
The Celler-Kefauver Act outlawed predatory pricing.
Answer the following statement true (T) or false (F)
Assume an economy experiences, for a given period, a 1% increase in output and a 5% increase in productivity. Given this information, we know that which of the following occurred for this economy during this period?
A) The unemployment rate increased during this period. B) The unemployment rate decreased during this period. C) The unemployment rate did not change during this period. D) The effects on the unemployment rate are ambiguous. E) none of the above
How much is it?
