Refer to the diagram. If aggregate expenditures in this economy are (C + Ig + Xn2), then the equilibrium levels of GDP and aggregate expenditures respectively will be

Refer to the figure above. What is the domestic demand for pens in Lithasia, after the economy opens up to free trade?

A) 6 units B) 12 units C) 16 units D) 22 units

According to the new classical school, if macroeconomic policy is perfectly predictable, then the aggregate supply curve and the Phillips curve must be vertical in both the short run and the long run

a. True b. False Indicate whether the statement is true or false

Suppose the government imposes a tax of 10 percent on the first $40,000 of income and 20 percent on all income above $40,000 . What are the tax liability and the marginal tax rate for a person whose income is $30,000?

a. both are 10 percent b. 10 percent and $2,000 . respectively c. $3,000 and 10 percent, respectively d. $3,000 and 20 percent, respectively

For interest rates to remain stable during economic contractions, the money supply would have to grow at the same rate as the demand for money

Indicate whether the statement is true or false