Suppose your bank pays you 4 percent interest per year on your savings account, so that $1,000 grows to $1,040 over a one-year period
If prices increase by 1 percent per year over that time, approximately how much real value do you gain by keeping $100 in the bank for a year?
A) $0 B) $10 C) $30 D) $50
C
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The firm in the figure above is in monopolistic competition. The firm has
A) no excess capacity. B) excess capacity of 10 units. C) excess capacity of 20 units. D) excess capacity of 30 units.
Which of the following correctly describes the macroeconomic long run?
a. A price level and level of real GDP where price expectations are correct, aggregate quantity supplied equals the potential output level, and aggregate demand equals aggregate supply. b. A price level and level of real GDP where price expectations are correct, aggregate quantity supplied exceeds or falls short of the potential output level, and aggregate demand equals aggregate supply. c. A price level and level of real GDP where price expectations are correct, aggregate quantity supplied equals the potential output level, and aggregate demand exceeds or falls short of aggregate supply. d. A price level and level of real GDP where price expectations are correct, aggregate quantity supplied exceeds or falls short of the potential output level, and aggregate demand exceeds or falls short of aggregate supply.
Which of the following is true?
A. To fight a depression, Keynes said that the government should spend money on carefully chosen projects. B. According to Keynes, an equilibrium below full employment was a rare occurrence. C. Keynes suggested that savers save and investors invest for different reasons. D. Keynes believed the economy was basically stable.
Autonomous consumption expenditures are
What will be an ideal response?