The aggregate expenditure line shows
What will be an ideal response?
real GDP on the horizontal axis and aggregate expenditure on the vertical axis
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Education is subsidized because it generates beneficial externalities
a. True b. False Indicate whether the statement is true or false
Suppose that a nation has adopted a fixed exchange rate with another country, and has a persistent trade deficit. What is most likely to happen?
A. A gradual increase in the value of its currency B. A gradual decrease in the value of its currency C. A “run” on its currency and a sudden appreciation D. A “run” on its currency and a sudden devaluation
Suppose the following information is known about a market: 1. Sellers will not sell at all below a price of $2. 2. At a price of $10, any given seller will sell 10 units. 3. There are 100 identical sellers in the market. Assuming a linear supply curve, use this information to derive the market supply curve
What will be an ideal response?
Suppose the country of Popcorn produces only jets and corn. If Popcorn cannot produce any more jets without giving up corn, we say that Popcorn has achieved
A) the highest marginal benefit. B) production efficiency. C) the lowest marginal cost. D) the highest opportunity cost.