Macroeconomic equilibrium occurs when:
a. Expected amount supplied equals expected amount demanded, which means expected leakages equal expected injections.
b. Leakages equal injections.
c. Supply equals demand and Leakages equal injections.
d. Expected and actual supply equals expected and actual demand, which means expected and actual leakages equal expected and actual injections.
e. None of the above.
.D
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The marginal product of a variable input is calculated as:
A) the change in total product divided by the change in output. B) total product divided by the change in the variable input. C) the change in total product divided by the change in the variable input. D) total product divided by the total quantity of the variable input.
The unemployment compensation program:
a. makes recessions more severe. b. makes recession less severe. c. makes recessions more severe and inflationary episodes less severe. d. makes recessions less severe and inflationary episodes more severe. e. has no effect on the severity of recessions and inflationary episodes.
An appreciation of the Norwegian kroner in relation to the U.S. dollar is most likely to cause:
a. an increase in the U.S. demand for Norwegian goods. b. an increase in the Norwegian demand for U.S. goods. c. an increase in the supply of U.S. goods to Norway. d. a decrease in the supply of Norwegian goods to the United States. e. no change in the demand or supply of goods for either country.
Refer to the above graph. This economy is at equilibrium:
A. at point b. B. at price level P1 and output Q1. C. at point a. D. at price level P2 and output Q2.