Refer to the diagram to the right. According to the? diagram, at what point is aggregate expenditure greater than? GDP?
A.) L
B.) J
C.) K
D.) None of the above.
Ans: B.) J
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Sellers may choose not to sell in certain markets because: a. it is possible to practice price discrimination against customers
b. buyers are unable to perceive the high quality of their goods and are, therefore, less willing to pay for them. c. they are able to impose negative externalities on third parties. d. an above-average profit potential is projected.
Which of the following accurately describes the minimum point of ATC?
a. P = MC and P = MR at q*
b. P = MC and P = MR at 0
c. P > MC and P < MR at q*
d. P < MC and P > MR at 0
In the short-run Keynesian model, to close an expansionary gap of $10 billion dollars government purchases must be:
A. decreased by less than $10 billion. B. decreased by $10 billion. C. increased by $10 billion. D. increased by more than $10 billion.
The crisis reflects a major intellectual failure of macroeconomics to understand the macroeconomic importance of
A) financial system. B) growth. C) unemployment. D) inflation.