Aggregate demand (AD)
What will be an ideal response?
(in a simple model without government or foreign trade): what households and firms intend to spend on consumption and investment: AD = C + I one
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A form of implicit collusion in which one firm consistently follows the actions of another firm is:
A) predatory pricing. B) a Webb-Pomerene association. C) parallel conduct. D) only illegal in Europe.
If you win $1 million in a lottery and are paid in installments,
a. the future value of these payments is $1 million b. the present value of these payments equals $1 million if the interest rate is zero c. the present value of these payments equals $1 million if the interest rate is 10 percent annually d. the present value of the payments exceeds $1 million if the interest rate is positive e. the future value of the payments is less than $1 million if the interest rate is negative
According to neo-Keynesians, the long-run Phillips curve is essentially horizontal
Indicate whether the statement is true or false
The market value of all final goods and services produced in the economy in a given year is:
(a) Consumer price index. (b) Circular flow of income. (c) Personal income. (d) Gross domestic product.