Refer to the information provided in Figure 12.4 below to answer the question(s) that follow.
Figure 12.4There are two sectors in the economy, X and Y, and both are in long-run, zero-profit equilibrium at the intersections of S0 and D0.Refer to Figure 12.4. Assume consumer preference changes toward X and away from Y. Ceteris paribus, the likely change in capital flow in sector Y will cause the industry's short-run ________ curve to shift to the ________.
A. demand; right
B. supply; left
C. supply; right
D. demand; left
Answer: B
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Keynesian picture the aggregate demand curve as rather __________, partly because interest rates may be __________ to changes in the real money supply
A) flat; highly responsive B) flat; quite unresponsive C) steep; highly responsive D) steep; quite unresponsive
Refer to the payoff matrix below. If Camp R Us announces that it will offer special financing, Happy Campers ________ believe Camp R Us as their incentives ________ align.
Camp with Us and Happy Campers compete in the market for campers. Each firm must decide each season if they are going to offer special financing or not. The above payoff matrix shows each firm's net economic profit at each pair of strategies.
A) should; do not B) should; do
C) should not; do D) should not; do not
The unit of account function of money refers to the
A) fact that money and income are the same thing. B) common denominator of measurement provided by money. C) characteristic that all money is intrinsically valuable. D) all of the above
The poverty rate for the elderly has declined noticeably since the mid 1960s
Indicate whether the statement is true or false