On a graph with time on the horizontal axis and real GDP per capita on the vertical axis, the income levels of poorer countries are
a. diverging more from the incomes of rich countries.
b. maintaining a constant gap with the incomes of richer countries.
c. crossing the line representing richer countries.
d. coming closer to the line representing richer countries.
d
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Budget deficits are important because deficits
A) cause bank failures. B) always cause interest rates to fall. C) can result in higher rates of monetary growth. D) always cause prices to fall.
In the Keynesian model, an increase in saving serves to decrease consumption spending, causing a multiple contraction in national income
Indicate whether the statement is true or false
Under monopolistic competition, a long-run equilibrium exists when price equals:
A. marginal revenue. B. minimum average total cost. C. average total cost. D. marginal cost.
In the figure below, if the price of the product increases from $5 to $6, then total revenue would:
A. Increase by $300
B. Decrease by $100
C. Decrease by $300
D. Stay the same