Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output
B. D; an expansionary
C. B; recessionary
D. D; a recessionary
Answer: D
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Which of the following is a key determinant of the price elasticity of supply?
A) the available technology B) the availability of substitutes in production C) the time it takes to change output in response to a change in price D) the slope of the supply curve
If the real interest rate is -1.4% and the nominal interest rate is 0.6%, expected inflation equals
A) -2% B) -0.8% C) 0.8% D) 2%
The largest International Monetary Fund quota subscription, denominated in Special Drawing Rights, is held by
A) the United States. B) Japan. C) China. D) Russia.
The price that represents the shutdown point for a perfectly competitive firm corresponds to the _____.?
Fill in the blank(s) with the appropriate word(s)