In the IS model, assuming that the real interest rate does not change, an increase in autonomous ________ leads to an increase in the equilibrium level of ________
A) investment; consumption
B) consumption; investment
C) net exports; investment
D) all of the above
E) none of the above
A
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Excess supply is:
A. the result of a price that is above equilibrium, causing the quantity demanded to exceed the quantity supplied. B. the result of a price that is below equilibrium, causing the quantity demanded to exceed the quantity supplied. C. the result of a price that is above equilibrium, causing the quantity supplied to exceed the quantity demanded. D. the result of a price that is below equilibrium, causing the quantity supplied to exceed the quantity demanded.
In the long run, a profit-maximizing monopolistically competitive firm sets it price:
A. above marginal cost. B. below marginal cost. C. equal to marginal revenue. D. equal to marginal cost.
Opportunity cost:
A. is the same as sunk cost. B. includes only monetary expenses. C. is nonexistent for some choices. D. is the net benefit forgone by not undertaking the next best alternative.
Most public school teachers are
A. members of a union, with pay determined by a scale recognizing only teacher quality. B. members of a union, but must negotiate their pay as individuals. C. members of a union, with pay determined by a scale recognizing only length of service and educational attainment. D. free agents, negotiating their salaries each year as individuals.