Consider the above figure. The curve shown is sometimes referred to as
A. the Phillips curve.
B. the Laffer curve.
C. the Keynesian curve.
D. the Ricardian curve.
Answer: B
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What do developing countries want regarding agriculture in the Doha Round?
What will be an ideal response?
Which of the following is considered in the AS/AD model but was not considered in the short-run macro model?
a. The effect of price changes. b. The effect of interest rate changes. c. Increases in government spending. d. Monetary policy. e. Decreases in government spending.
If disposable income increases by $400 billion and consumption increases by $300 billion, the MPC equals
a. 0.75 b. 0.60 c. 0.80 d. 0.68
Use the following graph to answer the next question.
Given the graph above, which level of output should the perfectly competitive firm choose?
A. X2, since at this level of output the difference between MR and MC is maximized B. X3, since any increase in output beyond that point will reduce profits C. X1, since a lower level of output will reduce profits D. either X1 or X3, since profits will be the same