Along an IS curve as interest rates __________, income must be __________ so that saving, which is a positive function of income, can be lower to equal the smaller level of investment
A) decline; lower
B) decline; higher
C) increase; lower
D) increase; higher
A
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Which of the following economic activities is ignored in GDP accounts?
A) The market value of medical services B) The market value of educational services C) The market value of illegal drugs D) The market value of prescription drugs E) The market value of the services associated with used-car dealers
Which of the following is not correct?
a. An organized withdrawal of labor from a firm by a union is called a strike. b. The power of a union comes from its ability to strike if the union and the firm do not agree on the terms of employment. c. Economists who study the effects of unions typically find that union workers earn about 25 to 35 percent more than similar workers who do not belong to unions. d. Workers in unions reap the benefit of collective bargaining, while workers not in unions bear some of the cost.
Under a floating exchange-rate regime with a high degree of capital mobility, in the short run an expansionary fiscal policy will most likely create pressure on
A. the domestic currency to appreciate. B. monetary authorities to revalue the domestic currency. C. monetary authorities to devalue the domestic currency. D. the domestic currency to depreciate.
Which of the following pairs of equations describes the supply and demand curves given in the accompanying demand and supply tables?PriceQuantity SuppliedQuantity Demanded$20040$251040$302040$353040$404040$455040
A. Qs = 2P - 40; Qd = 40, respectively B. Qs = P - 20; Qd = 40, respectively C. Qs = P - 40; Qd = 40P, respectively D. cannot be determined