According to the Keynesian cross model, equilibrium occurs where:
a. the 45-degree line intersects the aggregate expenditure line
b. the potential GDP line intersects the aggregate expenditure line.
c. the 45-degree line intersects the potential GDP line.
d. the potential GDP line intersects the nominal GDP line.
a
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We could increase the production of both heart transplants and round-the-world trips if we moved to point T from point
A. P.
B. Q.
C. R.
D. S.
In the money market, if the quantity of money supplied exceeds the quantity of money demanded, the nominal interest rate will ________ and the prices of assets will ________
A) fall; increase B) rise; increase C) fall; decrease D) rise; decrease E) fall; not change
How do perfectly competitive markets allow for the movement of resources from less productive industries to more productive industries?
What will be an ideal response?
What is the shape of the long-run supply curve in an increasing-cost industry?
A) horizontal B) inverted U-shape C) downward sloping D) upward sloping