In the Keynesian cross diagram, if the aggregate expenditure line intersects the 45-degree line at potential GDP, then the economy is in recession
a. True
b. False
Indicate whether the statement is true or false
False
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The "new economy" that emerged in the mid-1990s is based on
A) manufacturing. B) information technology. C) financial services. D) retail sales.
Grant has $200 to spend each month on restaurant meals and jazz performances at his
neighborhood jazz club. The price of a typical restaurant meal is $20 and the price of a jazz performance ticket is $10. Grant is maximizing his utility by consuming 6 restaurant meals and attending 8 jazz performances. Suppose Grant still has $200 to spend, but the price of restaurant meal rises to $25, while the price of jazz performance ticket drops to $8. Can it be determined if Grant is better off or worse off than he was before the price change? Use a budget constraint/indifference curve graph to illustrate your answer.
When new farmers enter the wheat industry, the equilibrium price of wheat
a. always falls. b. falls only if existing firms gang up on the entrant. c. falls only if existing firms are earning no economic profit. d. falls only if the new firm is more efficient than existing firms.
Which of the following statements is consistently associated with the standard migration model?
A. The decision to move is expected to increase the household's overall utility. B. Return migration occurs only when the mover regrets having made the initial move. C. Moving for job reasons is always done at the expense of family desires. D. Repeat migration occurs only when the mover is moving for job-related reasons. E. Repeat migration occurs only when the mover regrets having made the initial move.