The intersection of the aggregate demand and the aggregate supply curve defines the equilibrium level of _____ and the price level
a. real interest rate
b. nominal interest rate
c. nominal GDP
d. real GDP
e. unemployment
d
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Suppose the government of a small open economy reduces its spending, so that national saving increases. The result is
A) an increase in the real interest rate. B) an increase in net exports. C) a decrease in the real interest rate. D) an increase in investment.
Under perfect competition,
a. a single seller sets the price b. sellers can easily enter or exit the market c. a small number of sellers offer differentiated products d. a government franchise protects sellers e. an intense rivalry between two powerful firms determines the market price
Monetarists believe that the aggregate supply curve is relatively steep in the short and long runs. This means they expect
a. inflation with no change in output. b. increases in output to bring much inflation. c. increases in output to bring little inflation. d. decreases in output to bring much inflation.
Which of the following is a true statement?
a. GDP per capita does not account for the difference in the cost of living among nations. b. The LDC classification is of the questionable accuracy. c. All of the answers are correct. d. GDP per capita is affected by exchange rate changes. e. GDP per capita ignores the degree of income distribution.