In 2007, investment in France increased by 7 billion euros. Which of the following occurs?
I. an upward shift in the AE curve
II. a leftward shift in the AD curve
III. an increase in the price level and real GDP in the short run
IV. an increase in the price level and no change in real GDP in the long run.
a) I, II, III, & IV
b) I & III only
c) I, II, & IV only
d) III & IV only
c) I, II, & IV only
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A firm that charges a very low price would be practicing predatory pricing if
A. the price allowed only a small profit. B. the price would only be profitable if it succeeded in driving a rival out of the market and prices increased afterward. C. the price allowed profits that were positive but below those earned by other firms. D. it only offered the low price to its rivals’ customers.
The stock of wealth increases more rapidly the faster the flow of ________.
A. assets B. money C. saving D. income
Explain the three possible ranges for price elasticity of demand
What will be an ideal response?
Which of the following will NOT cause a shift in the demand curve for reserves?
A) Business cycles B) A change in the federal funds rate C) Changes in deposit base D) Liquidity shocks