A Fed purchase of securities will most likely have which of the following effects?
A) a rightward shift in the IS curve
B) a leftward shift in the IS curve
C) an upward shift in the LM curve
D) a downward shift in the LM curve
D
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The figure above shows the production possibilities frontier for a country. If the country is producing at point D, then the
A) resources are being used efficiently. B) technology associated with producing SUVs and compact cars is advancing. C) resources are not being used efficiently and/or are unemployed. D) production of SUVs and compact cars is maximized. E) None of the above answers is correct because it is not possible to produce at point D.
M1 is actually a smaller amount than M2
a. True b. False Indicate whether the statement is true or false
When the government levies a $100 million tax on people's income and puts the $100 million back into the economy in the form of a spending program such as new interstate highway construction, the
a. tax multiplier magnifies the effect of taxes on the level of national income b. tax, then, generates a $100 million decline in national income c. level of national income expands by $100 million d. effect on national income is uncertain e. tax multiplier overpowers the income multiplier, triggering a rollback in national income
"The market demand curve for labor is the horizontal summation of the labor demand curves of all firms." Do you agree or disagree? Why?
What will be an ideal response?