In the Monetarist view, the aggregate demand curve will be unstable when __________ is __________
A) exogenous investment; stable
B) the money supply; stable
C) exogenous investment; varies
D) money supply; varies
D
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The first table shows the market demand schedule for CDs, and the second table shows the cost structure of each firm. The CD market is perfectly competitive and there are 100 identical firms
The market price of a CD is ________, and ________ CDs are produced and sold. A) $9.00; 20,000 B) $9.50; 15,000 C) $10.00; 10,000 D) $8.50; 24,000
Farmers can choose to produce eggs and/or milk. If there is a successful advertising campaign for people to "drink milk," then what will be the effect in the egg market?
a. None, since consumers do not see eggs and milk as related goods. b. Egg demand will increase. c. Egg demand will decrease. d. Egg supply will increase. e. Egg supply will decrease.
Which of the following indicates why the role of vigilant investors is important for the efficient operation of an economy?
a. These investors generally serve on the boards of directors of corporations. b. These investors tend to buy and sell stocks in a way that provides feedback to management about the quality of its decisions. c. These investors help allocate capital efficiently among investment projects. d. Both b and c are true.
Assuming the economy in the graph shown is currently at equilibrium A, we can conclude:
A. there must be unemployment of resources. B. the economy is in a recession. C. the economy is producing less than its potential level of output. D. All of these are true.