According to the monetarist view, the
a. IS schedule is quite flat; hence, reflecting a high interest elasticity of aggregate demand.
b. IS schedule is quite steep; hence, reflecting a high interest elasticity of aggregate demand.
c. LM schedule is quite flat; hence, reflecting a high interest elasticity of money demand.
d. IS schedule is almost vertical; hence, reflecting a very low interest elasticity of money demand.
A
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Refer to Table 2-6. What is Lucy's opportunity cost of making a wagon?
A) 3/4 of a wagon B) 2 tricycles C) 1 1/3 tricycles D) 3 wagons
What is the least accurate description of changes in the New World distribution of slaves over time?
a. The West Indies' share of slaves in 1825 was slightly larger than its share of the original transatlantic slave trade. b. The United States was a relatively minor importer of slaves, but grew to hold the largest number of slaves. c. Brazil was the largest importers of slaves from Africa and had one of the largest slave populations in 1825.
Suppose there are two parallel highways between two cities with approximately equal traffic. What would you expect to happen if the state began charging tolls to drive on one of those highways?
A. Traffic would decrease on both roads. B. More drivers would drive on the non-toll road, making the toll road less congested. C. More drivers would drive on the toll road making the non-toll road less congested. D. Traffic would remain evenly divided between the two roads as drivers continuously sought the less-congested route.
The aggregate demand curve:
A. is upsloping because a higher price level is necessary to make production profitable as production costs rise. B. is downsloping because production costs decline as real output increases. C. shows the amount of expenditures required to induce the production of each possible level of real output. D. shows the amount of real output that will be purchased at each possible price level.