When aggregate expenditure is given as Y = 400 + 0.5Y, short-run equilibrium output equals:
A. 400.
B. 600.
C. 1,200.
D. 800.
Answer: D
You might also like to view...
Punitive damages in medical malpractice cases
a. ensure that successful plaintiffs receive full compensation for their losses. b. serve the same purpose as criminal & civil penalties, such as jail sentences & fines. c. redistribute income from defendants to successful plaintiffs. d. ensure that the cost of risk avoidance falls on providers. e. fully compensate victims for their losses.
If a demand shock causes the economy to move to a real GDP level that is below its full employment level, then
a. we refer to this as a positive demand shock. b. the economy will remain at this point in the long run. c. the AS curve will adjust in the long run until the economy returns to full employment. d. the AD curve will move back to its original position in the long run. e. the unemployment rate will decline.
If potential output exceeds actual output, ________ shifts downward over time.
A. the short-run AS curve B. the short-run AD curve C. the long-run AS curve D. the long-run AD curve
An industrial union is
A) a union composed of public employees. B) a union composed of workers who are in a specific geographic area. C) a union composed of workers who are employed in a particular industry. D) a union composed of workers who engage in a particular trade or skill.