This graph reflects a Keynesian viewpoint. How would the economy respond to an aggregate demand increase under the classical model?
a. The economy would quickly adjust to a new point of long-run equilibrium where AD2 intercepts LRAS.
b. The shift from AD1 to AD2 would produce a short-run equilibrium point at e2 that differs from E1.
c. The economy would quickly adjust to a new point of long-run equilibrium where AD1 intercepts LRAS.
d. The shift from AD1 to AD2 would also shift LRAS rightward to a new position at RGDP2.
a. The economy would quickly adjust to a new point of long-run equilibrium where AD2 intercepts LRAS.
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Studies of discrimination in baseball suggest that black players
a. suffered from discriminatory wage differentials several decades ago and those wage differentials persist today. b. suffered from discriminatory wage differentials several decades ago but those wage differentials have been eliminated. c. did not suffer from discriminatory wage differentials several decades ago but in recent years wage differentials have become evident. d. did not suffer from discriminatory wage differentials in the past and they do not suffer from wage differentials today.
Suppose that in a closed economy GDP is equal to 11,000, taxes are equal to 1,000, consumption equals 7,500, and government purchases equal 2,000 . What is national saving?
a. -500 b. 500 c. 2,000 d. None of the above is correct.
The primary purpose of antitrust legislation is to:
A. protect small business. B. protect the competitiveness of U.S. business. C. protect the prices of American-made products. D. ensure American labor is paid a fair wage.
Assume that Sharon purchases $5,000 worth of a stock. To do so she uses $1,000 of her own money and borrows the remaining $4,000 at a 7.0 percent interest rate. If the stock’s value decreases by 10 percent in one year and she has to sell the stock at that time, what is her rate of return?
A. ?10 percent B. ?50 percent C. ?78 percent D. ?156 percent