The above table presents data from the nation of Pacifica. Aggregate planned expenditure equals $7.5 trillion when real GDP equals
A) $4.0 trillion. B) $8.5 trillion. C) $7.5 trillion. D) $6.0 trillion. E) $8.0 trillion.
D
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According to your textbook authors, laws restricting competitors
A) restrict competition. B) reduce greed. C) promote economic fairness. D) improve the alternatives available to customers.
A price-discriminating firm charges the lowest price to the group that
a. has the most elastic demand. b. purchases the largest quantity. c. engages in the most arbitrage. d. is least responsive to price changes.
When the economy is in a liquidity trap, which of the following is not correct?
A) A reduction in the interest rate can be used to increase output. B) Fiscal policy is more important. C) Interest rate is zero. D) Large increases in spending and cuts in taxes were not enough to avoid the recession.
If the Federal Reserve buys $3 billion worth of Japanese yen and sells $5 billion of euros, how does this affect the balance of payments?
A. Falls by $2 billion B. Falls by $5 billion C. Rises by $2 billion D. Rises by $3 billion