In the classical model, the aggregate supply curve is
A. a horizontal line.
B. a vertical line.
C. an upward sloping line.
D. a combination of horizontal, upward sloping, and vertical lines.
Answer: B
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Refer to Figure 12-1. If the firm is producing 700 units, what is the amount of its profit or loss?
A) profit equivalent to the area A B) loss equivalent to the area A C) loss of $280 D) There is insufficient information to answer the question.
In a small open economy, Sd = 200 + 500rw and Id = 300 - 200rw. If rw = 0.1, then net exports =
A) -50. B) -30. C) 30. D) 50.
Nontraded securities are part of
A) direct, but not indirect finance. B) indirect, but not direct finance. C) direct and indirect finance. D) neither direct nor indirect finance.