Which of the following statements is accurate?
a. When unplanned inventory changes are positive, GDP is below its equilibrium value
b. When unplanned inventory changes are negative, GDP is above its equilibrium value
c. When unplanned inventory changes are positive, GDP is at its equilibrium value
d. When unplanned inventory changes are negative, GDP is below its equilibrium value
e. None of the above
D
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All of the following can be true about the optimal basket consumed by a consumer, except
a. The basket is on the budget line. b. The person is spending all of their money on the basket. c. The basket is on the highest indifference curve. d. The budget line is tangent to an indifference curve at the optimal basket.
The slope of the BP curve reflects the
A) ease with which capital flows across a nation's borders. B) inflation rate of the country. C) sensitivity of income to changes in the inflation rate. D) ease with which the central bank can keep an exchange rate fixed.
Excess quantity demanded may result from
A) a government-imposed minimum price above market equilibrium. B) a government-imposed maximum price below market equilibrium. C) an oversupply of output. D) technological progress.
On the 45 degree line diagram, the 45 degree line shows points where
What will be an ideal response?