When the IS and LM curves are combined in the same diagram, the intersection of the two curves determines the equilibrium level of ________ as well as the ________
A) aggregate output; price level
B) aggregate output; interest rate
C) money supply; price level
D) consumer expenditures; interest rate
B
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The Human Development Index was proposed because
A) people confuse nominal GDP and real GDP. B) nominal GDP and real GDP are subjective measures. C) of the limitations of real GDP as a measure comparing the standard of living in different nations. D) the GDP deflator changes if the base year is changed. E) different nations have different populations.
A profit-maximizing monopsonist will hire workers up to the point at which
A) W = MRP. B) MRP = MFC. C) W = MFC. D) W = MRP = MFC.
Product differentiation in monopolistically competitive markets ensures that ____ in equilibrium
a. marginal cost will exceed average revenue b. price will exceed marginal cost c. average variable cost will be declining d. marginal revenue will equal average total cost
Suppose all prices decrease by 5 percent in the year while the total sales of laptops remain constant. This is
A) a violation of the law of demand since fewer laptops should be purchased at a higher price. B) a violation of the law of demand since more laptops should have been purchased with higher incomes. C) not a violation of the law of demand since the relative price of laptops did not change. D) not a violation of the law of demand since the law of demand does not apply to expensive goods like laptops.