The aggregate supply curve is likely to be relatively flat in the short run
A. but relatively steep in the long run.
B. and relatively flat in the long run.
C. but vertical in the long run.
D. None of the above is correct.
Answer: A
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Savings bonds differ from most other bonds in that-
What will be an ideal response?
Refer to the above diagram. The economy is at equilibrium at point C. What fiscal policy would increase real GDP?
A. Increase aggregate demand from AD1 to AD2 by increasing government spending. B. Make no change because the economy is at or near its full-employment level of real output. C. Increase aggregate demand from AD2 to AD1 by decreasing taxes. D. Decrease aggregate demand from AD2 to AD3 by increasing taxes.
The neoclassical synthesis
A) was a name coined by Keynes himself for his new theories. B) rejected virtually all of Keynes' insights. C) held that econometric models of the economy could not be used to predict the future. D) held that economy always operated at or very near the natural rate of unemployment. E) was the dominant school of thought among economists in the 1950s and 1960s.
A firm should never produce any output if
A) P < AVC. B) P < ATC. C) AR < ATC. D) MR < MC.