Which of the following is the correct way to describe equilibrium in a market?
a. At equilibrium, demand equals supply.
b. At equilibrium, quantity demanded equals quantity supplied.
c. At equilibrium, market forces are no longer at work.
d. Equilibrium is a tendency, a state of perpetual motion.
e. Equilibrium is the best combination of price and quantity.
b
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Over time, nations tend to converge to
A) the same balanced growth path and same income per capita. B) the same balanced growth path but varying income per capita. C) different balanced growth paths but the same income per capita. D) different balanced growth paths because of varying income per capita.
_________ inflation can be explained by a ________ shift in the aggregate _________ curve.
A. Demand-pull, leftward, demand B. Cost-push, rightward, supply C. Demand-pull, leftward, supply D. Cost-push, leftward, supply
If your real disposable income goes up by $200 per week, and your real consumption spending goes up by $160 per week, you have an marginal propensity to save of
A. 1.2. B. 0.8. C. 0.2. D. 1.0.
Identify the four major instruments of monetary policy.
What will be an ideal response?