The intersection of the IS and LM curves shows
A. the short-run trade balance.
B. that the balance of payments is in equilibrium.
C. the short-run equilibrium interest rate and the output level in the economy.
D. the long-run equilibrium inflation rate and the natural rate of unemployment in the economy.
Answer: C
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Which of the following statements about product development in monopolistic competition is correct?
i. Firms in monopolistic competition undertake too much product development for efficiency. ii. Firms in monopolistic competition undertake too little product development for efficiency. iii. Product development might allow the firm to temporarily earn an economic profit. A) i only B) ii only C) ii and iii D) i and iii E) iii only
_________ percent of Americans have different residences than they did the year before.
A. 30 B. 15 C. 9 D. 22
If diminishing returns exist, then
A. The total cost curve will be flat. B. The total cost curve will be negatively sloped. C. Each unit produced will cost incrementally less to produce. D. Each unit produced will cost incrementally more to produce.
The inputs used in the aggregate production function do NOT include which of the following?
A. The number of workers in a country B. Education and skill levels C. Average price levels D. Knowledge