The property of diminishing marginal rate of substitution follows from the property that the indifference curves are
A) downward sloping.
B) upward sloping.
C) bowed in toward the origin.
D) bowed out from the origin.
C
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Which of the following statements is correct?
A) Through autonomous monetary policy adjustments the Federal Reserve can ultimately determine the equilibrium real interest rate in the long run. B) Through autonomous monetary policy adjustments the Federal Reserve can ultimately determine potential output in the long run. C) Through autonomous monetary policy adjustments the Federal Reserve can target any inflation rate in the long run. D) all of the above E) none of the above
Each potential short-run average total cost curve is tangent to the long-run average cost curve at:
a. the level of output that minimizes short-run average total cost. b. the minimum point of the average total cost curve. c. the minimum point of the long-run average cost curve. d. a single point on the short-run average total cost curve.
Within the simple Keynesian Cross model, equilibrium takes place: a. at full employment
b. when aggregate spending equals real disposable income. c. when the money interest rate and real interest rate are equal. d. when actual and expected rates of inflation are equal.
Net investment can be positive, negative, or zero, but gross investment can never be less than zero. Explain
What will be an ideal response?