Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2.
B. P3 and Y1.
C. P2 and Y2.
D. P2 and Y3.
Answer: D
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The seller of an option has the ________ to buy or sell the underlying asset while the purchaser of an option has the ________ to buy or sell the asset
A) obligation; right B) right; obligation C) obligation; obligation D) right; right
In the very short run ________
A) the real interest rate will be affected by changes in the nominal rate B) monetary policy has an immediate effect on inflation C) the inflation rate is determined by the federal funds rate D) all of the above E) none of the above
Which of the following statements is true? a. Externalities can never refer to costs borne by the seller
b. Both external costs and external benefits can never exist for the same good. c. Externalities can never lead to under-production of a specific good. d. External benefits can never exceed external costs.
In a small open economy,Sd = $5 billion + ($100 billion) rw,Id = $10 billion - ($50 billion) rw,Y = $50 billion,G = $3 billion,rw = .06.(a)Calculate the current account balance.(b)Calculate net exports.(c)Calculate desired consumption.(d)Calculate absorption.
What will be an ideal response?