Exogenous variables in the IS-LM model variables are
a. money supply
b. autonomous consumption
c. government spending
d. prices
e. all of the aboveFigure 7-4
E
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"Employment fell last month to its lowest level in the last six years" is an example of: a. the fallacy of composition. b. positive economics
c. normative economics. d. none of the above
If the Fed unexpectedly shifts to a more restrictive monetary policy, which of the following will most likely occur in the short run?
a. a decrease in the real interest rate b. an increase in unemployment c. an increase in real GDP d. an increase in inflation
If the demand curve falls below the ATC curve but lies above AVC, then the firm should
A. operate in the short run and the long run. B. should shut down. C. operate in the short run but not the long run. D. set price = marginal cost.
Which of the following is not a category of consumption spending in the national income accounts?
A. Housing purchases B. Nondurable goods C. Consumer durables D. Services