The IS curve is Y = 20 - 1.5r, and the aggregate demand curve is Y = 15.5 - 0.3?. When the inflation rate is 3 percent, output is ________
A) 20
B) 14.6
C) 9.5
D) 3.6
E) none of the above
B
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An individual will be considered risk neutral if:
a. he is indifferent between taking and not taking up the gamble. b. he pays someone to take away the gamble from him. c. he pays someone to allow him to take the gamble. d. he takes up the gamble under any situation.
To construct a graph that would enable us to find equilibrium GDP, we would need to plot
a. the consumption-income line b. a line showing the sum of consumption and investment at each income level c. the investment spending line d. the consumption-income line and the government expenditures line e. an aggregate expenditure line and the 45-degree line from the origin
A monopsonist must raise the wage rate if it desires to hire additional workers.
Answer the following statement true (T) or false (F)
If the number of employed went up and the number of unemployed went down
A. the unemployment rate would go down. B. the unemployment rate would go up. C. the unemployment rate would stay the same. D. the unemployment rate might go up, go down, or stay the same.