Other things equal, if a change in the tastes of American consumers causes them to purchase more foreign goods at each level of U.S. GDP, then:
A. unemployment will decrease domestically.
B. U.S. real GDP will fall.
C. inflation will occur domestically.
D. U.S. real GDP will rise.
B. U.S. real GDP will fall.
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Refer to Scenario 12.2. If each player plays an ideal mixed strategy, then neither Jerome nor Eliza will donate a kidney about ________ of the time
A) 6.25% B) 12.5% C) 37.5% D) 56.25%
A supply curve is the same as a
A) total cost curve. B) marginal cost curve. C) total benefit curve. D) marginal benefit curve. E) deadweight loss curve.
In a closed economy, private saving, , is equal to
A) I - (G - T). B) I + (G - T). C) I + (G + T). D) I - (G + T). E) I + (G - T) + C.
Monetarists argue that the demand for money is unresponsive to interest rates, i.e. depends on income only, produces a
A) vertical LM function. B) horizontal LM function. C) vertical IS function. D) horizontal IS function.