What is consumer surplus?
a. The maximum willingness to pay for a unit of a product
b. The price that an individual pays in equilibrium for a product
c. The difference between how much an individual is willing to pay for a product and how much he ends up paying
d. How many units are traded in equilibrium
c
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The above table gives data for the nation of Mouseville. There are no imports into or exports from Mouseville. Unplanned inventory changes equal $50 billion when real GDP equals
A) $800 billion. B) $900 billion. C) $500 billion. D) $300 billion. E) $700 billion.
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the real GDP and the monetary base in the context of the Three-Sector-Model? a. Real GDP rises and monetary base falls
b. Real GDP falls and monetary base rises. c. Real GDP and monetary base fall. d. Real GDP and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
If purchasing-power parity between France and the U.S. holds, but then U.S. prices rise,
a. the real exchange rate is above its purchasing-power parity value. An increase in the nominal exchange rate can move it back. b. the real exchange rate is above its purchasing-power parity value. A decrease in the nominal exchange rate can move it back. c. the real exchange rate is below its purchasing-power parity value. An increase in the nominal exchange rate can move it back. d. the real exchange rate is below its purchasing-power parity value. A decrease in the nominal exchange rate can move it back.
Liquidity is:
A. the magnitude of change in the money supply as controlled by the Fed. B. a measure of how easily a particular asset can be converted quickly to cash without much loss of value. C. the speed with which physical dollars change hands in the economy. D. the speed with which dollars are spent in the economy.