The two basic markets shown by the simple circular flow model are
A. product and resource.
B. capital goods and consumer goods.
C. free and controlled.
D. household and business.
Answer: A
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Agraria uses bushels of wheat to quote prices. In this case, bushels of wheat act as a
A. medium of exchange. B. store of value. C. commodity value. D. unit of account.
In the long-run ISLM model and with everything else held constant, the long-run effect of a contractionary fiscal policy is to ________ real output and ________ the interest rate
A) not change; not change B) decrease; decrease C) decrease; not change D) not change; decrease
An increase in the U.S. price level will: a. increase U.S. exports
b. increase U.S. imports. c. increase the quantity of RGDP demanded in the United States. d. both (a) and (c)
Refer to the graph shown. The cost of 5 units of labor and 6 2/3 units of machines is the same as the cost of:
A. 5 units of labor and 10 units of machines. B. 15 units of labor and 2 units of machines. C. 10 units of labor and 10 units of machines. D. 7.5 units of labor and 5 units of machines.