Short-run equilibrium exists
A) where the AD curve intersects the short-run aggregate supply (SRAS) curve.
B) where the AD curve intersects the long-run aggregate supply (LRAS) curve.
C) on the AD curve only.
D) on the SRAS curve only.
A
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The above table has the private demand for loanable funds and the private supply of loanable funds schedules
If the government budget surplus is $200 billion, and there is no Ricardo-Barro effect, the equilibrium real interest rate is ________ and the equilibrium quantity of loanable funds is ________. A) 8 percent; $700 billion B) 4 percent; $700 billion C) 4 percent; $500 billion D) 8 percent, $500 billion E) 6 percent; $600 billion
If prices rise in the United States, everything else constant, the dollar __________ against the yen and the yen __________ against the dollar
A) appreciates; appreciates B) appreciates; depreciates C) depreciates; appreciates D) depreciates; depreciates
The question of how a tax change might impact U.S. economic output is most closely associated with the study of
A) microeconomics. B) managerial economics. C) macroeconomics. D) consumer economics.
When prices fall and the cash balances that you hold in your wallet are worth more allowing you to purchase more with your money, then this explains why the aggregate demand curve is downward sloping. The effect that describes this phenomena is the:
A. Real balances effect B. Foreign trade effect C. Interest rate effect D. Nominal income effect