The LM curve is the set of combinations of ________ such that ________
A) interest rates and real money balances, real income equals real money balances times (1/r)
B) interest rates and real money balances, the money supply is equally demanded
C) real income and real money balances, the production of output is equally demanded
D) real income and interest rates, the production of output is equally demanded
E) real income and interest rates, the money supply is equally demanded
E
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By the end of the 1960s, many countries felt that they were importing inflation from
A) the United States. B) Germany. C) France. D) Japan. E) the United Kingdom.
In the fooling model's AD/SAS/LAS diagram, short-run equilibria to the right of the LAS curve require the price level to be
A) above what workers expect. B) above what firms expect. C) below what workers expect. D) below what firms expect.
If a nation imposes a tariff on imports, the portion of the tax paid by citizens depends upon
A. elasticity of demand. B. elasticity of supply. C. how important the good is. D. income elasticity. E. cross elasticity of demand with domestic products.
The curve that shows the relationship between the price of a good and the quantity that consumers are willing to purchase at each price is the
a. supply curve. b. demand curve. c. production possibilities curve. d. consumption curve.