The circular flow model is all of the following except
a. an abstraction from reality
b. a model of two markets
c. a model of two agents
d. a simple economic model
e. designed to aid policy makers
E
You might also like to view...
In the foreign exchange market, the supply curve of dollars is
A) vertical. B) downward sloping. C) identical to the demand curve for dollars. D) upward sloping. E) horizontal.
Lisa eats both pizzas and burritos. If the price of a pizza increases, Lisa's opportunity set
A) becomes larger. B) becomes smaller. C) is unchanged. D) cannot be determined without more information.
By looking at the graphs showing a negative supply shockâs impact on aggregate demand and aggregate supply and on the Phillips curve, we can see that high energy prices in the late 1970s shifted ______.
a. the short-run aggregate supply curve left and the short-run Phillips curve right
b. the short-run aggregate supply curve right and the short-run Phillips curve left
c. both the short-run aggregate supply curve and the short-run Phillips curve right
d. both the short-run aggregate supply curve and the short-run Phillips curve left
Assume that Jane's marginal propensity to consume equals 0.8, and that in 2004 Jane spent $36,000 from her disposable income of $40,000. If her disposable income in 2005 increased to $50,000, her consumption spending increased by
A) $4,000 B) $8,000 C) $9,000 D) $10,000 E) $14,000